Many misconceptions here, and mostly not in the article.
I read the article. It is typical. It's a bit over the top. There are many types of LPFM stations. Obviously the religious stations predominate. Many are satellite delivered formats of the licensee's flavor of belief. There are politically 'left leaning' stations that term themselves community stations. For many, they allow the general public to host their own show and most carry some Pacifica offerings. There is the group that is comprised of radio people who aspire to call the shots at a radio station. There is a group of LPFM operators that function just as the small town radio station for their community. Sometimes they are the only station with anything local on the dial.
The reason for the 'slowdown' in LPFM is the window opened for filing back in Fall 2014. Almost every station is constructed or about to be. It is not that LPFM is waning. You just don't have lots of chatter about LPFM like you did when hundreds of stations got their Construction Permits.
Of all the 'types' of stations only the left leaning group holds gatherings throughout the country on a regular basis, but not too many enjoy the ability and funds to attend. I am not sure they feel they are really part of this massive grassroots movement. They all seem to be fiercely independent. Many different groups of LPFM stations have several discussion groups to share information and ask questions. For the most part, nobody thinks of themselves as a movement but rather a station attempting to serve their niche. Some joined state broadcast groups. Some were told they could not join.
LPFM stations go to non-profit organizations entering radio, mostly for the first time. Quite a few lack any help from a radio person and frequently if they find any help from a person who has been in radio, it's typically a DJ. Of all the groups, most have little understanding of what is required to run a radio station (the logistics and how the pieces fit together). Some believe they can recreate radio with their personal opinion of what radio should be. Even some with no radio experience do very well, across all types of LPFM stations. Most find their vision and reality are like black and white. Across the board there are stations in every type that super serve their communities and have managed to be able to hire staff and function much like a full power non-commercial in smaller scale.
While most LPFMs have no clue about funding their stations and literally can't even cover their monthly operating expenses through grants, underwriting and donations. There are those exceeding $200,000 a year in billing, maybe more. That's not a huge number but not terribly bad for a small town AM in rural America. Generally speaking, most LPFM operators hate sales and don't understand sales.
The worst enemy of LPFM is the mind. There are those that hate commercial radio so much they refuse to apply any of the basics every radio station utilizes to build an audience and funding. There are those who think they have the secret to bring people back to radio by playing their personal favorites. Even many churches fail to realize 'outreach' means doing something other than church 24/7. There are shining examples of operators trying to reflect their communities via their LPFM. These folks are doing well and are actually valued by the listening public.
Many of these stations have boards that all individually think they are gods of radio or they don't understand the business, creating infighting and sometimes they dissolve. One well meaning fellow took on board members across all walks of like in his community. Board meetings were like cat fights. In the end, one special interest group bullied the other board members so much, the board was comprised primarily of their friends. They booted the founder and took over the station. I gather the problem lies in board members wanting a radio station versus board members who had served on a board in the past and understood a board member governs versus operates.
LPFMs can be community stations, run by volunteers or be formatted like conventional radio with hired staff. They are not all volunteer or hobby operations although those are much more common.
LPFM has a nice position to fill: to super serve a small geographic area with programming that hits as many in that service area as possible as well as selling Underwriting to the small businesses right in their primary trade area at a price they can afford. Many times the LPFM is the only affordable choice for the small business. For those DXers that think they do not deserve being on the air, they do. They have a FCC license and the FCC's blessing like every other station on the dial. Such comments are obviously not well thought out. Ironically, LPFM stations as a whole want to and strive to abide by FCC rules. In every bunch there are a few that are bad eggs.
One LPFM that seems to really be doing well is KDRP in Dripping Springs, Texas. They began as a single LPFM, adding translators and splitting off to another non-profit to operate full power stations. They show up in the ratings in Austin, Texas. Granted they're at the bottom of the pack but at least their eclectic format shows up.
If this second window is like the first, about 1/3rd of the applicants that got a Construction Permit either never build or will eventually turn in the license within 3 to 5 years mostly due to a lack of funding. A reason this happens is a LPFM must be licensed 3 years to 'transfer' to another group. There are certain geographic restrictions to qualify any group for a LPFM license. Thus, the number of potential non-profits that could obtain the station are few in number. And LPFMs cannot be sold. You can only recover actual expenses. Many turn in the license because they cannot find someone qualified and no broker is going to help them because they can't make any money from it. From what I have observed, it's really not that much different than full power radio.
In fact, I try to help LPFMs and have a website to share information. I am simply trying to pay forward for all those people who take me under their wing to share. You'll find a link in my profile.