Correction: AM is not going obsolete; it has been obsolete for decades, longer than most people posting on these boards have been alive. There's also little appetite among the government to kill it as the AM band can't really be repurposed for anything else. It's private companies trying to kill it by not including it among the entertainment options they offer.
I have SiriusXM, and it's better than most of my local radio stations. Having said that, if given the choice between SiriusXM or streaming radio stations via iHeart and TuneIn, I'll take streaming six days a week and twice on Sunday. Satellite sounds boring and small-time when compared to the great major market radio stations. The content on radio is still there. The problem is getting people to find it because, for most of us, it's not on our local dials. I've said myself that radio isn't something I'm willing to work at to enjoy, and I know most people have no idea what stations offer certain programming and where. They're also not willing to seek it out, and the apps don't do great jobs at pointing people toward it. When it comes to the cost of playing music, streaming certainly isn't cheap. Operating a terrestrial station, however, is still relatively cheap when it comes to playing music. I can sit at my computer, create a week's worth of playlists including commercials and voicetracks, hit a couple buttons, and walk away from it. Running a quality talk station costs a lot more, and my experience has always been that talk programming requires more manual intervention and babysitting, or at least it does if you have a long list of paying clients.