If I can offer an opinon...
I think the majority of LPFM groups went in with great intentions, but not much else. Few had much in the way of broadcast experience. And I think many really believed the fairy tale that the public was so starved for a local voice on the airwaves, they would rally around them and throw money. It's a rude awakening.
The successful LPFM's are the ones that knew going in who they were going to serve and how they were going to pay for it. They also knew that dropping big $$$ on fancy equipment, offices, and studios was the express lane to bankruptcy.
The ideal that many community radio groups push is the radio version of community access cable television. Of course that only works when you have the local cable franchise subsidizing you. The mixed bag, "many voices under one tent" approach is very romantic but almost never succeeds in genertaing any appreciable audience.
PTR