There are no technical impediments to high fidelity audio because of amplitude modulation. In the past the big limitation was the bandwidth of intermediate frequency (IF) amplifiers in the receivers which were typically tuned for maximum gain and not flat audio band response. The transmitters have flat response out to the legal limits. Radio stations have a monitor receiver that has proper IF audio response and the sound of those are very good.

Not that I care too much, as I basically only do on demand media these days.

Especially in the car! I can’t make out voices on FM at all. But AM, easy.