Interesting seeing this (rather old) thread get revived after so long....but, since it did.....
Late chiming in here, But confirming, HD is, indeed originally and still today, not "high definition" BY definition, but Hybrid digital. Why? Because tit uses part of the analog transmission to send you a digital audio and data signal. The digital signal rides along on, or alongside the analog.
As far as comparisons and comments so-far go, With regard to localism, the original agreement with FCC licensing was that satellite radio was NOT to carry localism. It was my understanding that this contributed to the yanking of some original XM rebroadcasts of "larger corporate" stations on it's channels.
As far as quality goes, on the AM side of HD, analog AM stereo far exceeds anything AM's hybrid digital can give. We can put out a wideband 10khz sound for you, where with HD, half or less than half is what you'll be hearing as the HD makes the AM station share the digital signal with the analog, thus cutting bandwidth to both from what analog can offer the listener.
It's slightly different with FM's HD. However, it should be noted that the AM side is already dead and buried for the most part, one reason being the hash noise that is generated on both sides of an AM HD signal. If a station was HD on our 1430, for instance, you'd be putting out digital noise on 1420 and 1440. FM does not have that issue, but looping back to quality, based on what my 2015 Jeep's satellite radio sounds like, AM Analog stereo, and HD FM are FAR ahead of what we're being served by the bandiwdth-misers at XM/Sirius.
Satellite today? Nothing like the quality XM had when it made it's debut back so many years ago. In my receiver, most of the music streams sound like mp3's with bad artifacts ringing. It's painful to listen to any "broadcast" in which quality is not a concern. We'r a 60-plus year old AM station shoving analog AM stereo into an antenna array designed in 1956, and our NIGHT AM picked up on an AM stereo tuner and sent down the web to listeners is better than what I hear on today's satellite radio. In the daytime we beat their quality hands-down! (via a more modern 1-tower system with newer tuning units installed.)
I agree with the consensus, HD is for content-craving individuals. It's also a way for owners to pay big bucks for a license to a possible competitor (who is an investor in Ibiquity) while single handedly cutting up the pie of available listeners in their coverage area even MORE and maybe losing some (listeners) from their mother-ship main channel on FM. When this is done, it can be dangerous. Advertising on the HD channels when translated to FM is usually less expensive than the main station, and advertisers like "cheap"...some jumping ship from the main signal which cuts income to the radio station's main flagship. There are no limitations I know of commercial sales on HD stations, at least ones masquerading as "real" FM's via translators. It's done frequently.
Radio station owners also have abused the loophole of taking an HD channel and rebroadcasting it on FM translators. Some avoid the ownership caps in markets that way, some just do it to sound like they own more stations. This is an issue that should have been disallowed from day one, and the FM band would be much less crowded, not to mention Ibiquity and manufacturers of HD radios may have sold more units if there wasn't a way to get around listening to the actual HD by station's owners putting HD onto FM translators in the first place.