Years ago the most popular MOH used to be either a radio station (local) or Muzak. Lately I don't hear either one. Has something changed regulation-wise that would prevent picking a local station for MOH or is it a financial thing?
Fully agree most MOH tend to alienate callers - especially the ones with non-stop advertising.
Pretty much everyone runs VoIP. To play a radio station on hold you would need to stream the audio. Streaming the audio puts more load on the processor than playing a file. Most VoIP appliances use low power chipsets, and processing the call is more important than the music on hold, so they play files.
The first thing I had to do with ours was delete all of the files that came loaded on the phone system and replace them with ones normalized to be much softer at the bitrate that the system preferred. That made a big difference. But you can still get the bursts of static when on a cell phone thanks to dueling codecs.