The rules for translators and LPFM, from what I have read, are poorly written, and have legal loopholes that allow what your talking about, to happen. That is, LPFM's being co-located, and non profits getting ownership of more than one translator and creating mini radio networks. There has been quite a bit of chatter about it on the boards in various cities.
So the Commission has had about half a century to amend or modify the translator rules were it so inclined. That it has not done this would support the contention that they see no need.
The ownership rules on translators appear to be purposely written so as to not limit ownership. In theory, an entity could operate a group of translators in a large market area and, through them, cover nearly all the market.
The ownership caps for AM and FM broadcast stations do no include translators, making it seem that the FCC intentionally excluded them in the knowledge that, save for smaller towns, a translator was not a full market facility.
The translator was originally conceived when many smaller towns, particularly in the West, either had no local stations or just one or two. Translators allowed, for example, Bishop, CA, to have large market formats via community supported translators.
So the Commission has had about half a century to amend or modify the translator rules were it so inclined. That it has not done this would support the contention that they see no need.
It seems they are Mutually Exclusive: http://licensing.fcc.gov/cgi-bin/prod/cdbs/forms/prod/getimportletter_exh.cgi?import_letter_id=57262
I hope the applicants will cooperate to share single facilities and save at least $20K apiece.There are a good number of timeshares, mostly in big cities.
Timesharing is happening in Austin, Texas at two non-comm FMs that split the broadcast week and it's been that way for years.