For TV the plan was flawed from the start, someone should have said no and forced a rethink. Or at least not tried to set up city based services from UHF sites built to cover wide areas.
I think the problem with radio is that the large companies have bought up the most viable of the ILR areas and are now mopping up the smaller SALLIES, which aren't big enough to make a decent profit but are useful to extend the existing networks even though it means sacking a few hundred employees and selling off a few buildings. If it is done correctly (i.e. doesn't follow the Bauer model), it creates sleek, efficient, centralised networks making it difficult for remaining independents to compete. The networks then just sit around waiting for the indies to give up the fight and become the next domino to fall.
America has always had local stations operating within large networks. It's a format that moves forward under its own momentum. Trying to kick start a similar structure in a market not used to this way of operating was never going to be easy.