AM has challenges, and I will be the first to admit that. It's a problem that radio-enabled smart phones will likely never be capable of receiving AM radio due to antenna issues, though I do believe most smart phones will ultimately have activated FM chipsets because the combined cost of bandwidth and battery utilization for streaming to phone users is tamping the desire to stream. More pressing is the fact that a larger proportion of listeners are camped on FM - though available content has as much to do with that as audio fidelity. Perhaps someday the FCC will explore the proposal for rulemaking before them to allow AM band migration to 76-88 MHz, which is the spectrum left behind by TV Channel 5 & 6 in the DTV transition (the entire FM band sits between VHF TV Channel 6 and 7 so with the spectrum available in 76-88 MHz, you could migrate every station in America on the AM band, add new LPFMs, and the bonus is a large portion of the existingradio receivers in the U.S. can already tune to those frequencies).
The ways to survive, and even grow on the AM band are full of risks, but there is still tremendous value in a fully mature, proven platform available to everyone in America for the cost of a cheap receiver. Brokered programming of many kinds will continue to find life on the AM band. There are growing podcast-to-air opportunities for podcasters who seek more exposure - and an infinite amount of new talent and potential content for AM stations. What podcaster wouldn't fall all over himself/herself to actually be broadcast? Startup AMs, rimshot stations, and smaller markets that present the station as local going forward will be doing it with one or two "faces." It could be two deejays. It could be two talk hosts. It could be two newspeople. And, those people (or the one person) will be the kind of person who is eager to attend all the bar functions, remotes, fundraisers, etc. to be "the" face of the station. If the station can operate with two people, then at least there is some balance for the staff.
There are rimshot signals and smaller AMs that are doing well. Nobody talks about them, though. Almost none of them are standalone operations.