I'm not crazy about the idea, either. If you're going to serve a city of licence, the least you can do is set up shop there. Hard to be involved in the community if you're not actually in the community. 

Anyone remember when stations in the U.S. used to have to announce their studio-to-transmitter link, usually at midnight? I always wondered why. It couldn't mean anything at all to the listener and seemed like a pointless bureaucratic exercise. Anyway, at some point that disappeared since I never hear it anymore.

(In fact, on some American stations using imaging or branding like "X-97.3," "Rock 102" or "Power 106," I almost never hear actual call letters anymore, either. That's a shame, because there are a million cookie cutter formats with the same names. But call letters are the one thing they have that's unique to each station.)    

Isn't this a bit of a soil shaker? 
What happens to border towns? 
Will it matter if a station is broadcasting from Canada or USA?