all they need to do is keep it analog and just change the bandpass to about 25 to 50 kilohertz wide and that would make room for more stations
When you have a FM demodulator designed for 180 KHz (200 KHz is the channel width, not the sideband extent, which you can calculate using Carson’s rule), that same demodulator, when encountering half the width signal, will produce 1/2 the output volume; because FM encodes the audio waveform with frequency deviation. If the deviation is half, then so is the output waveform. Though I should point out that +/-75 KHz is the actual audio deviation, so really. 150 KHz.
Additionally, within the standard FM signal, encoded at rates of deviation, there is a stereo pilot at 19 KHz, a stereo subcarrier at 38 Khz, as well as digital information (RDS/RDBS) and two mode narrow-band monophonic audio channels up higher yet.
Another thing: The wide bandwidth is part of what gives broadcast FM its capacity for reasonably high fidelity. You drop down to 25...50 KHz total bandwidth, and you'd going to see some noticeable reduction in fidelity; cram a stereo subcarrier in there, and you'll see even more.
So it's not a matter of "just make it narrower" because compatibility with older receivers, of which there are a huge number still happily being used by their owners, would be unable to make useful audio out of the signal and because audio fidelity and stereo imaging would suffer (and that's not what FM listeners would call an "advance".) Oh, and you'd lose the capability for the RDBS and the extra audio channels, too.
The right answer is leave the current FM band alone. The FCC wants new transmission types with reduced range that won't work with the gear people already have in order to fluff the corporations? Fine. Put it somewhere where it won't wreck 70-ish years worth of radio gear owned by a huge portion of the population. Maybe someone will even listen. Stop forcing citizens to make expensive changes they have no need to make.
Corporations drive these consumer-level stupidities. Of course, for the corporations, it's not stupid: They're intending to make a lot more money off of us citizens. And with the FCC (in the US) or whatever other government coercion backing their play, they will succeed, too.