I suspect many view DAB radio as a solution to a problem they don't have, and even as a problem which they will be forced to deal with eventually.
I'm dubious about the 50% take up too. Who was asked and what was the question?
Yes we have a DAB set, (but we also have at least five FM ones if you count in household vehicles). We find the DAB harder to use, albeit perhaps due to familiarity, but NO better reception or sound quality, possibly poorer. In practice it's rarely used.
Yes we regularly listen to digital radio, sort of. We put on the bedroom TV radio channels most nights for half an hour of background music. It's digital, but does that count?
Regarding killing local stations, I'm not sure. It's happened to the FM ones anyway up north, as the regional stations are bought up by national ones and the local content disappears.
For my part, the longer FM remains, the better.