I've long thought it was a good idea, and my dream station as a teen was 5 watts into a longwire, I thought every kid should be able to do that and reach their friends in the neighborhood using a CB final.
We need to do something to revitalize the USA AM band, and small neighborhood stations for different groups might help. We could have immigrant stations, municipal and city council info for what's happening in the community, and even niche formats like Furry Radio or radio about radio.. :)
It could be a service based on need, if the stations weren't reaching listeners, then they'd change or go off the air, with no high stakes like in the commercial broadcasting world.
Boomer