It's been my experience that the majority of listeners are annoyed and turned off by competitors blasting each other. Most of them think it's radio BS. Normal people are media savvy, have been for years and years now, and have a low tolerance for hype and nonsense. I was able to build more than one franchise by promising listeners that, among other attributes, my station would not do such things.
As for FLZ vs. Q105, if Q105 had simply not taken the bait and reacted, Power Pig would not have had the impact it did...it would have only scored as a teen station and Q105 would have killed them in older demos. Marc Chase knows this as well as anyone. So do the guys at CC Cincinnati. That's why you won't hear a reaction to Furman from WLW or WCKY.