I really had to think about this.
I'm not going to answer it in the way of a station beating another station. Emmis was SMART to go the hip-hop wave when they did since the station was number 1 throughout most of the 90's. But I'll go about it in this style....
The one thing about dance music is that it IS cyclical. It rode a strong wave during the mid 80's and early 90's with the emergence of freestyle and house. Things were fading in the 90's as freestyle was eventually pushed off rotation on the station. Now, granted this is all speculatory (since this NEVER happened)....but this is my take (and I'll admit, a bit of "Toronto" is included in this) if Hot 97 was still doing Top 40/Urban format (the official name)
1. Eurodance - A big wave was riding high in Toronto with Eurodance during the mid 90's. Artists like Corona, Culture Beat, 2 Brothers On The Fourth Floor etc. were riding high in Toronto though artists such as Real McCoy and La Bouche did crack here. The music would most likely have been part of the rotation in 1994/95. The "Happy Hardcore" sound which was also big up in Toronto would probably have never made it here.
2. Freestyle on a comeback? - You would have heard more of the West Coast sound with Jocelyn Enriquez and Lina Santiago much earlier. That would have been the evolution of the music along with the New York based artists doing something similar. That COULD have saved freestyle in that sense and the music would have come back with a newer sound that people would have accepted, as opposed to the "pause" between Hot 97 and 'KTU whereas when they did play Enriquez and Santiago, it received lukewarm praise but not enough for the freestyle strong to accept a change.
3. Trance - I don't know if certain aspects of Trance would have been on rotation, but that music was gaining strength in the late 90's. Dirty Vegas would have probably been the most "extreme" out of trance, but there would have probably been a "Trance" party (similar to the "All Night House Party").
4. "Florida Breakz" - I think a small aspect of it would have gotten here since a lot of elements of the music had a "freestyle" flow to it. Orlando based groups such as Pepperspray, DJ 43 (thanks to station WPYO - 95.3 Party) would have gotten airplay on Hot 97 during the early 00s.
5. Electro & "Dirty Dutch" - Pulse 87 left just as electro was growing. Even though they did play "Infinity" - Guru Josh Project, if Hot 97 was still around you would have heard more of it. Also, be sure thanks to a show such as "Jersey Shore", there would have been a "Dirty Dutch" style specialty show that Hot 97 would have done on the weekends, for those that love the "fist pumping" sick sounds...which has taken off AFTER Pulse went off the airwaves.
Yet through it all, the most popular mainstream dance tracks would have gotten airplay along with the rhythmic aspects of Top 40. However, I would like to think that if a Hot 97 still existed as a dance format, it would have been a lot easier for artists that are "core" in nature to crack into rotation. I also think freestyle would have been able to evolve to a sound that while the first generation may not necessarily accept, the second generation would have embraced as its own. There still would have been a 'KTU wanting to compete, though I would think the station would have leaned more classic (like Mix 102.7) and totally have avoided the currents, which would have been fine because those that wanted classics would have gone to 'KTU while those wanting currents would have stayed on Hot 97.
Now granted, my name is not Joel Salkowitz, lol, but if Hot 97 were to have stayed the course as it first broke out in 1986 it would have remained a hip station that would have been on the dance music trends. With all of the voids that have occurred, while dance still made its evolutions, certain things were held back. And while things are starting to look good for us now, thanks to Lady Gaga's influence, it had (and some ways still is) a struggle as dance continues to strive for mainstream/Top 40 acceptance.
Okay, MarcR, this is the part where you're supposed to blow me up for being "dense" and "non realistic" about what I've said.
Neverthless this is my hypothesis.