Just popping in here from Western NY... I'm from the area originally (left in 1989) and stop by this board every so often to catch up.
The "repetitive playlist" comment seems spot on to me. Add to that, a nontrivial fraction of the material being played simply wasn't Smooth Jazz in my opinion, and not just on WQCD. Mariah Carey isn't Smooth Jazz, Phil Collins isn't Smooth Jazz, Steely Dan isn't Smooth Jazz (that might be a bit more arguable). Jumping to the other coast, I was very disappointed when KKSF started mixing in too much "Top 40", so 'QCD wasn't alone.
I'd like to find reasonable Internet outlets for Smooth Jazz, and I'm open to suggestions, either here or via PM. I do listen to the stream of Magic 106.7 HD-2 out of Boston (WMJX) which is alright. The format hasn't been in place here in Rochester in years, since Clear Channel had it for a few months on their "revolving door" station (which is currently country to try to take a bite of the top FM outlet in the market, Entercom's WBEE).
I picked up on another thread the link to Clear Channel's generic SJ stream online (appears to be part of "iheartmusic.com"?), and hit it as the final notes of Gerry Rafferty's "Baker Street" faded out-- great song, one of my all time favorites from an all time favorite artist (as in, I own all of his original CDs), but NOT Smooth Jazz! Ditto for "I Keep Forgettin'" by Michael McDonald; good song, I know the words, but still not Smooth Jazz... The "now playing" song information isn't working for me as I type this either, but so far I think I've picked out Chris Botti and Marc Antoine.
With respect to the original question, I don't see a return of the format to NYC either, as much as I'd like it to be so.
Back to lurk mode...