PortlandMainer, you and Scott are kind of saying the same thing w/r/t money.
Having worked for UMaine (the primary benefactor of MPBN) after practically growing up there, I can tell you that they are really good at crying poverty to the state. I'm sure you know that as well. I'm not sure the state can really afford to fork over any more cash than they already have (that's a nice way of saying I'm almost certain they can't afford it and really shouldn't do it), but they've got some really good arm-twisters working for them who've made a career out of this sort of thing.
Think "auto manufacturers" if you want some idea of the UMaine economic model. I know, I used to print their checks.
As far as translators go, Scott is absolutely right. Translators aren't the big money-saver one would think. Costs of tower construction or rental are exactly the same, equipment costs can approach half that of a low-cost solid-state transmitter, you need a line-of-sight shot to the transmitter proper unless you want to pay big $$$ to Fairpoint for landline costs (some stations have seen the cost of their lines go up 250% or more since Fairpoint bought Verizon's landlines) which in turn means a really tall tower, which means higher rent or construction cost, and so on, and so on. Add to all this the fact that a translator is not given the protections that full-license transmitters are, and you pass the point of no return for translators pretty quickly.
Channel Surf: as far as the "religious nut jobs" go, I occaisionally do work for one of the bigger religious broadcasters in the area, and he prefers to go the translator route. His approach is to saturate the area with cheap overlapping translators so he doesn't get hit so hard when he gets displaced. Money is not limitless for these guys, either. When money's good for the bible-beaters, they all beat down Alan Weiner's door to buy time on WBCQ in Monticello (what, you don't own a shortwave radio?). Alan's not selling anywhere near the airtime he was just a couple of years ago, and some of his longest-running clients are pulling out.
I haven't talked to any of my friends at MPBN, but I agree with Scott that this will likely play out for about six months or so. With no Alfond-esque philanthropists around to bail them out (except perhaps Stephen King), the money will likely have to come out of the state's already-depleted coffers, but it's possible that a few private donors could prop them up enough to keep a few of the facilities going a bit longer.
My $0.02.
--Thom Rounds