They don't take a dime away from any commercial radio station.
But to a listener, not a radio nerd, it represents radio on the FM band. These days especially, impressions matter. If someone tunes into a poorly-run, or amateurish-sounding presentation or programming, they're likely to pursue other options like streaming. What's that percentage of the audience is? I couldn't tell you. All I can say is; the LAST thing radio needs is erosion of the radio brand created by complete amateurs.
Some are in towns abandoned by their radio station or are serving populations that commercial radio does not want.
But to use your example; if a town/community can't support a commercial or public/donation station, how would someone with any common sense believe that building a station with minimal coverage, and no ability to sell ads, would survive? Answer: It won't. At least not for long. As b-turner said; too many of the LPFM's are run by people who have no clue of what it costs to run even a flea powered radio station, let alone develop programming that compels a tiny listening audience to donate regularly. Especially true in a day where I can create my own playlist, right on my smartphone, or stream a broadcast from another country.
I've met some great people through both commercial and community radio. I've also met bad guys in commercial and community radio. When I remember the good people, I have fond memories. When I remember the back stabbers, the unethical, and the crooks I can become a bitter old man who wishes I'd chose another profession.
Having a hard time wrapping my head around defending LPFM stations with traits of human nature. The fact remains, there are good and bad human interactions everywhere. None has anything to do with radio.
I prefer the good memories. The bad guys all lose their ass in the end. It's called karma.
I'm a huge believer in karma too. But I also believe in the old practical saying: '
No good deed goes unpunished'. There are probably dozens, if not hundreds of people who applied for LPFM's who sunk and lost their entire life savings or retirement, only to find out that all the back-slapping and atta-boys from local community members wouldn't pay the bills.
It's like I tell the radio-nerd romantics on this site all the time; unless you've secured financing, hired lawyers, gone through a potentially painful application process, built or acquired a radio business, then beat the bushes for advertising to support it, paid salaries, written big checks for upkeep and maintenance; you don't know sh*t about running radio..