While I agree that it ought to have AM, the lack of AM's inclusion wouldn't affect me one way or the other. There are no AM HD stations in my area, and i've long since given up on AM HD. Too big a sacrifice for a low-bitrate, artifact-filled format that actually sounds worse than good, wideband mono.
Then there's the problem of putting an AM tuner into a box with a CPU, and other noise-inducing circuitry. Of course it can be done, but is it worth it?
Now FM HD is a different matter. And fifty dollars is a FAIR price for a good pocket, headphone FM stereo radio. Here are just a few examples
http://www.ccrane.com/radios/pocket-radios/sangean-dt180a-pocket-radio.aspx
http://www.ccrane.com/radios/pocket-radios/sangean-dt220a-pocket-radio.aspx
http://universal-radio.com/catalog/spcialty/4502.html (great little radio, I paid 50 bucks for mine when it first came out)
http://universal-radio.com/catalog/spcialty/4400.html
http://www.jr.com/sony/pe/SON_SRFM37W/
So the Insignia is not only in line with the cost of other good quality headphone radios, it's less expensive than many of them. Living in a rural area, far from HD signals, I'm going to have to buy one just to see if it works here! Even if I only get one or two HD signals (I'm guessing WFDD in Winston-Salem, and WDAV Davidson), it will be worth purchasing if the DSP is used to enhance the reception of analog FM stereo, as is the case with the Sony XDR-F1HD. While the Sony works great for HD, it's real strength is it's ability to snatch analog FM stereo signals from great distances, in fully separated stereo, with apparently no noise penalgy over mono. Truly remarkable. I've read that analog FM stereo reception is better on the Insignia than just about any headphone portable. If this is true, then that's justification enough for it's existence, and for me to purchase it. Even if HD fails in the long term, it will have brought VERY useful technology that hopefully lots of manufacturers will employ...namely the use of DSP to enhance analog FM stereo reception!
Of course it's possible that, like the older Accurian and Boston Acoustics models, this one goes to mono at WAY too high a threshold, and begins to roll-off highs when signals are still pretty strong in order to prevent the listener from hearing ANY noise. Not a good approach, as it makes analog FM stereo sound quite a big worse then it needs to.
So this is potentially a sin-win situation. Heads we get a great portable HD radio and extra programming. B we get noise-frree, distortion-free, fully -separated FM stereo into the deep fringe areas with even a headphone cord for an antenna. That's the potential. Only time will tell. In the meantime, someone must learn how to force-analog on this portable. That feature should be mandatory!