When Bob authored that white paper IBOC bandwidth restrictions were not in the picture so in a lot of respects he got it right.
AM can sound remarkably good but not with the bandwidth restrictions required by IBOC. When bandwidths were allowed out to 10/12kHz and receiver bandwidths were the same AM sounded great with near FM quality. With IBOC, for AM stations to be able to remain in the "mask" the analog bandwidth is reduced to under 5khz. A telephone circuit is 3khz!
There are a few music AM stations in DFW who while working under the restrictions of the NRSC curve still have sufficient bandwidth that when listened to with a wideband AM receiver sound pretty good. Remember the WLW Crosley 50kw that was "Cathenode modulated" (DC coupled) was certified by MacIntosh as "High Fidelity" in the 1950's a certification not easily earned.
With the noise levels and bandwidth restrictions on today's AM band the quality is no where near where it was in the post war years. While processing wars in the 70's were not helpful, they did bring about innovations to the band such as PDM/PCM modulation and multi-band processors such as the DAP 210/310/610 and the infamous AM Optimod.
Here at my home, I'd stack my 1941 Western Electric 451 or my "Quincy Tin Can" 1959 Gates BC-1T up against any AM for quality of transmission. But I'm not limited to IBOC bandwidth restrictions as current Hybrid stations are working under.
I agree, IBOC requirements and AM NRSC standards before IBOC did and do continue to degrade AM audio quality, no question about it.
And, under laboratory conditions, with custom made transmission and receiver components, and with supported by a complete vacuum of impulse noise (thus the controlled lab conditions), AM can get really good.
I recall, but can not find, an exact reference to a story about Bob Carver creating an FM quality AM transmitter - receiver pair that rivaled FM quality in laboratory comparison tests.
Now to the real world, circa 1988, 570 KLDD was in Motorola C-QUAM AM stereo under Hue Beavers. And Hue did it right. I believe this was prior to NRSC-1 perhaps. K-Oldie sounded very, very good on the little Radio Shack AM Stereo receiver we used as an off-air monitor source. Notice that K-Oldie resorted to using a Radio Shack AM Stereo receiver... the availability of such receivers was quite limited.
But as good as it sounded stationary, I could never find a AM Stereo car receiver that even approached sounding good, and I sampled the field of the available few. Even rented cars w/ AM Stereo to listen to KLDD.
Besides the constraints of NRSC and IBOC, constraints existed and still exist in AM receiver design, as well as AM tranmission antennae bandwidth before we consider superior AM modulation schemes that replace plate modulation.
It is unfortunately that AM became the unwanted bastard step child of broadcast radio due to technical challenges that faced both the broadcaster and the receiver manufacturer.
I have always been amazed by the disconnect between CEA and IRE (now IEEE).
Here's a quick example, my $50 mp3 player... creative labs... hardly can pick up FM in stereo. And I'm in a better than city grade locale. Perhaps I should move to Cedar Hill for better reception on that.
In other words, radio is an afterthought now in 2013. Why was AM an afterthought 25 years ago?