HD on AM is kind of a joke. Currently it cannot be used at night, as the sideband interference would travel great distances and interfere with adjacent channel stations.
In central Illinois, I think most of the AM broadcasters would be nucking futs to convert their graveyard frequency AM stations to HD...they would never make the money back.
As for FM; there holds some promise as you can have at least 2 channels of good quality along with CD quality audio of your main channel. The problem is; since you are still using most of your power with your analog signal (this is still important as this is the kind of receiver most listeners have) you cannot use much power for your digital quality stuff. What happens is you get real poor building penetration with your HD or digital product.
As for coverage, most people complain that, as with AM, HD on FM fills up your side channels causing interference on your first adjacent frequencies. So in the fringe areas where you used to be able to pick up stations on the adjacent channels, they are now being blocked by the IBOC hash from stations equipped with HD.
Drive to a market where HD is present...press your scan button and see how many times it stops on an empty frequency with static that is directly adjacent to a station running IBOC.
THe system basically sucks, but we had to have something that was in-band on-channel as there are no recievers our there.