Good explanation of the history—the only piece you left out was the lobbying that made it happen.
The local broadcasters were a part of the National Association of Broadcasters which had/still has an impressive DC lobbying effort that knew how to bribe and/or blackmail politicians. They could destroy any Congress-critter with negative coverage on their local stations. Those who co-operated were rewarded with favorable coverage.
It was (and is) a classic shake-down operation.
My disdain for the political process came from my work in the cable TV business.
Part of my job was to interface with local city and state government. They were hamfisted in their quid pro quo fundraising. And you would have to listen to them drone on and on.
Once or twice a year we would go to DC. Those folks were a whole new level of grifters. If you did not show up with a bundle of checks you would never be able to get an appointment with the very busy reps and senators.
And in the end…because “everyone hates the cable company” they just kept tightening the screws.
The over regulation is what lead to the smaller companies to sell out to the Comcast’s of the world. Comcast, when I was in the business, was a decent sized operator out of Philly. They were an ambitious bunch—but not as sharp as the senior management of our group. But our group was older and they just took the money and ran.
Congress wrecks everything.