I can see a couple of problems in sat radio that will keep most
listeners tuned in to local radio.

1. In larger markets sat cannot provide up to the minute traffic

2. In smaller markets like where I work (Ely, Nevada) local weather
and or EAS information.

Unless they can figure out a way to let listeners know what traffic is
like across the floating bridges in Seattle or what local goverment is
doing here in Ely to prepare for flooding or severe thunderstorms radio
will alwys have an audience.