The non-industry folks have the advantage of real-life, street level observation. Whereas the insiders tend to view it through the corporate prism, which can distort.
The industry has been watching WFEZ (and, consequently WDUV, KISF and KYXY) for some time. Remember, WFEZ had a horrible start, going to old and too soft (Fleeetwoods, anyone?) and spent several years figuring out how to make a non-current/recurrent based AC work with 25-54. The early results were very discouraging, and it was really not until last year that we saw really good sales numbers.
A lot of credit goes to the programming team of WFEZ and Cox for sticking with the idea and developing it: Jill Strada, OM / Gary Williams, PD / Jeanne Ashley, MD. Bravo to them!
I don't think advertising is as big a problem as it's being made out to be, not with all these "Breeze" stations popping up everywhere. That wouldn't be happening if ad agencies were rejecting it. So there's something besides age demos at work here.
There is, so far, no issue with ad revenue where the stations have proven themselves. But remember, agencies buy on longer-term rolling averages of many books, so it will take each of these converts time to monetize any ratings improvements.
On the other hand, in markets like Buffalo where most business is local, this format may actually have greater appeal to advertisers as it's quite likely that many of them will also be listeners.