Oh ok, thanks David..
So it just the receivers that sound bad
Basically, yes.
For several decades (since the end of the crystal set era), most AM receivers have failed to pass the whole audio frequency range transmitted by the broadcasters.
When designing an AM broadcast receiver, a trade-off needs to be made between frequency response and selectivity. A broadband circuit would carry all of the brilliance of the original broadcast, but any degree of adjacent-channel interference would be carried to the detector as well, causing an annoying whistle from the adjacent stations' carriers and splatter from their sidebands.
Using a narrowband IF chain blocks the adjacent channels, allowing one to hear the desired station at a greater distance, but then the bells and cymbals will be thrown into the trash with the interference.
There were ways around the paradox. A few receivers had a selectivity switch - wide for music and narrow for dealing with noise and interference, but by the time manufacturing had become cheap enough to justify its inclusion, the industry had decided that "AM was for talk".
A notch filter could cut the whistle (the most annoying part), but not the splatter. A standardized noise reduction system could have reduced the splatter, but that would have meant standardized processing - unthinkable in an era when several competing companies were in the business of selling stations a new processor every other year.
An unfortunate problem was the choice of 10kHz (or 9kHz) channel spacing. A 10kHz whistle is very effective at getting through the human ear canal (resonant at about 10kHz) to the eardrum (a "shrill" sensation). Had they chosen 12.5kHz (86 channels not including X-band) or 13kHz (83 channels), there would have been far less interference, especially on local and clear channels (fewer channels, but more service).
As for "when did the FCC force AMs to go to 5kHz of audio" - you may be thinking of the NRSC standard, announced about 1985, introduced about 1987, supposedly "voluntary with a five-year sunset", only to be abruptly made mandatory when not enough stations joined voluntarily (about 1989). It enforced a 10kHz cap (not 5kHz). The cap had been 15kHz.