With very few exceptions, I do not see corporations dictating local playlists. Corporations may instruct local stations to target a specific audience/format, but with very few exceptions, corporate playlists are a huge fallacy. And with that, it seems that the same people who complain that local managers don't have enough authority are the same people who want to blame a corporate office for poor local judgement. The corporation is responsible for hiring capable/competent people to run the local office, but Entercom's corporate office can not be to blame for this incident, though I'm sure it will result in them (their insurance company) writing a big check.
This event is tremendously tragic and extremely unfortunate and some of the local staff members showed very poor judgement and it backfired. Interestingly, I've spoken with many promotions directors about the event and most recall similar bouts with bad judgement which fortunately did not yield the same results. Its sad, its tragic, it could have happened to many radio stations around the country at various times. The End just had bad luck to go with their bad judgement.