Remember, too, that most radios do not use true FM detectors, but some kind of slope detection. Within limits, more modulation = louder station.
Then add to this formula the following:
GM/SM's who got into radio during the top 40 AM days (they will be in their 50's now), who equate good audio with loud, squashed audio. E.G. Optimod 9000 into a plate modulated transmitter.
Car salesman (and other businessmen) who don't listen to radio except when you are trying to sell them on the merits of your station--they check you out on the nearest radio to see if you are as loud as the other stations in town.
Hence: 130% mod.
On the FCC inspectors: Unless there is an interference complaint from public safety, FAA, or a foreign government, all they care about is that your registered tower has a very visible number (where they don't have to get out of their car to see it) the paint looks good, and the lights are lit at night. At the studio, they want to see the public file--"issues" lists up to date, public and broadcasting (the latest version) in the file, EAS tests received and sent, tower lights checked.
Doubt that some of them would know what a transmitter is if they were standing in front of one.