Poor quality content? Big gamble.
The cable/satelite/regional channels products a lot of poor quality content, so what are we expecting from even smaller channels with tiny budgets and big overheads? I remember community channels from the 1990's (Videotron cable TV for example) and while one or two programmes were good it wasn't sustainable and it had limited broadcasting hours because it's not possible to fill a whole day with content. If people channel hop and see the station in "shutdown mode" they probably won't stop there again when hopping.
The amount of work that needs to go into procuding good content is huge, but it can help a lot if the presenter is very gifted and can entertain an audience without a script... which would effectively turn the channel into a showcase for the individual and they'd be scooped up quickly by bigger channels leaving the community channel in the lurch.
What's wrong with web TV? There are no broadcasting overheads if you upload content to existing CDNs (YouTube and others). If the content is good then it will eventually attract viewers - and from further afield than the intended local city/town.