I agree with BRNout's proposition to revamp the AM band. I think it would have a better shelf life than the deathwatch we're all predicting if it wasn't such a random bunch of noise and irrelevant, stereotypical (no pun intended to AM stereo!) programming. By contrast, only a fraction of the public will ever subscribe to satellite radio. (At least, I suggest, as long as it's limited to a proprietary service, instead of being a mix of free and subscriber services.)
One of the best things about AM is that, when there's enough power, and especially when the signal is directionalized TOWARD an intended area, like up and down US101 or I-5, it's a great way to reach a lot of terrain. And it sure beats dialing around every hour to retune FM signals on a long drive -- if you could find an interesting AM station worth listening to for several hours. (Would be nice to have one aimed across I-80 from California to Utah, and another on I-90 across the Cascade Mountains outside Seattle, too.)
KGO, for what it's worth, is a West coast example of the kind of signal I'm talking about. Gets in reliably at night, and usually an hour or two before sunset, from Oregon to as far as central Alaska when it's dark up there. But it's jammed out of the big population centers of Portland and Seattle by religious daytimers that were upgraded to fulltime awhile back.
Problem with this scenario is that it requires an FCC that's willing to plan, and regulate, to make some sense of AM for the future. And not rubberstamp whatever the commercial outfits with the biggest bucks want. (so, how has that worked out for ya, huh?) With all the crybabies on conservative radio that scream everytime some is perceived as threatening their status quo monopolies, it would take some cojones to follow thru and get past their objections. And it would require broadcasters with some longterm vision to endorse a plan for a limited number of planned, powerful AM signals. Probably some commercial, some non-comm. Instead of being passive and complaining they aren't getting their share. Imagine the value of several larger AMs, aimed at each region of the country, and planned with local terrain and conductivity issues in mind. Stations that will be required to provide news, weather and even road reports (mountain pass conditions for example) that long distance motorists will need. stopping at a rest stop for connecting a laptop computer to wi fi is the way you have to do it now, if you have winter driving to face, since you're not likely to find a local station giving conditions with any regularity in rural America.
And then give most of the rest of the displaced AM operators space on an expanded, former TV channel 5 and 6 FM band, comparable to their current coverage areas. (Which would probably be a lot of class A and lower FMs to replicate the 1 and 5 kw AM contours.) Probably give them a limited license period, in case outfits that would going to go under for more reasons than bad AM signals don't make it anyway as a local FM. And leave room to clean up some problem FM assignments, and to let some new folks get licensed to do their things on the new FM band, too.
This isn't really much different from what a number of other countries have done with AM radio, and some with longwave, all along. Instead of jamming up the dial with too much noise from so many smaller AM stations that don't really serve much of a significant purpose. Which is what we have today, and drives dial surfers AWAY from AM.
And still realize than FM is going to be where most of the people in any one market are going to be anyway. So some AM-FM simulcasting may still be required.
Whatever happened to the incentive to donate an occasional AM signal to an noncomm broadcaster? Of couse, it can't be just any AM signal anymore. Even the community radio folks are usually wise to the money pit of maintaining a low wattage daytimer.
But, back to the topic at hand... I could see AM 1550 becoming a repeater for either KQED (to help counter its severe multipath issues everywhere), or, maybe, to extend KALW's reach down the peninsula, and around the backside of some hills. The 1550 signal is not as bad as a lot of other AMs, despite the high dial position. Just doesn't go very far south or east of the hills. I used to hear it fine north of Santa Rosa, and I think most car listeners can still get a decent signal on it for up to 80 miles north of San Mateo.
Then again, there's nothing wrong with having a oldies station on AM that gets to a small but loyal audience. If that's what's happening with it now, and the licensee can make a modest profit off of it.
Of course, once there's an easy model for programming internet radio streams into a car and kitchen radio, the industry, and the cluttered bands, will have to change quickly, or it can rapidly become even more irrelevant to people equipped with new internet-streaming radios. Which means it's time to start planning a revamped dial NOW.