Hey Bill, are you still here?
Now that the entrenched forum argue-ers have had their say, I'll put my 2¢ in as a non-broadcast person who's just watching from the outside.
Being that you're on the low power side of things, and considering your beach-going target audience, I'd have to say shy away from HD for the forseeable future. I don't think it would give you anything good in trade for much crap. There just aren't enough radios out there to justify the switch for a real "hometown" station like yours. And all those analog radios
will sound worse, even if many people won't notice the thin layer of sizzle over the dull audio.
In radio, isn't the name of the game getting as many listeners as possible? With a smaller signal, I'm sure you want to do everything you can to maximize your audience... HD radio will make a few people's listening experience better, but it may alienate some folks, too... I doubt you'd get new listeners for upgrading. And that cost of upgrading
! Ouch.
At least with AM stereo, you're not hurting everyone's listening experience for the benefit of a precious few. (Of which I would be, if I brought my Sony Walkman to your area...)
So, why waste the money now? When every other station receivable in your area is HD and they finally sell HD portables that don't make Sirius satellite units look petite, then you can upgrade.
(On a personal note) I given up on listening to any AM station if I hear that fuzz over the audio. It's just too annoying. The rest of the interference issues that AM has are aggrivating enough. The other morning I was in Hernando, Mississippi, right outside of Memphis. I wanted to hear the news, so I flipped from XM to WREC 600. The otherwise strong and quiet signal I had whilst driving up the new stretch of I-69 was completely wasted with a sssssssssssssssssssshhhhhhhhhhhhhhhhhh over the audio. As soon as the first part of the newscast/related host banter was up, I flipped to WDIA 1070... Music, with sssssssssshhhhhhhhhhhh over it. Yech. It was back to XM. I can't believe more people aren't bothered by that noise
!