Note: I am NOT an authority; this is my take on history. I may be all wet.
Long ago, when the 33-1/3 rpm "long-playing" record came out, replacing the "78"*, RCA brought out the 45 rpm record. It was not really a competitor for the 33, but more like a direct replacement for the 78, so both of the new formats flourished.
*Trivia question: 78 rpm is not the exact speed. What is? (I suppose the prize for a correct answer to this ought to be a tortilla.) If you want more trivia, click here.
The following is my perception of history; I wasn't there. While CBS put on an regular demonstration of their pretty good system, RCA put on a very tightly controlled demo of stable scenes like a bowl of fruit* (and meanwhile applied whatever political pressure was needed) and thus steamrolled their way into being the standard-bearer -- and the legacy for us was that, for a few decades, when you had a West-Coast-produced program or commercial adjacent to one from the East Coast, you got jarring color shifts. Things are improved nowadays, but it took a long time.
*There was a "moment of some complexity"** one day when somebody painted all the fruit the wrong colors,
**a line from Kenneth Patchen, totally*** out of context.
***well, maybe not totally, since we're dealing with perception, as he was.
An AM radio signal consists of the "carrier" and two sidebands. The upper sideband is an exact copy of the audio, but shifted in frequency ("zero" becomes the carrier frequency). The lower sideband is a mirror image, on the other side of the carrier frequency. The Kahn/Hazeltine system basically just puts left-channel audio into one sideband, and right-channel into the other. It's simple and it works.
The American Way being what it is, even if the solution is obvious, we have to open the field for other possibilities. This is basically OK, really, and sometimes gets us better standards. The down side is that a bunch of people dream up harebrained schemes and waste everybody's time hoping they will be chosen as the new Miss Stereo Universe or something like that. This attitude I display here might give you a clue as to my opinion of systems that several outfits came up with, which were eventually rolled into the Motorola system. Hey, it works in the lab, and even on strong local signals! -- but in real world listening, especially with distant nighttime signals, it's strange, and I've heard it can make you a little seasick. And usually the way they build the receivers you can't turn off stereo and just do mono.
Until this thing came along, it was never OK to have any detectable phase modulation on the carrier; it was supposed to be rock-solid in frequency. Suddenly this grand scheme has some of the stereo information phase-modulated onto the carrier, and then normal AM modulation done on top of that. This produces a pretty complex waveform, and when you have complex propagation circumstances (as in the real world), it's kind of a mess.
So -- Motorola pushed on, RCA-style, and the FCC bought it. They authorized the Motorola system as the standard -- and immediately took a surprising amount of flak, apparently because a lot of people in the broadcast industry thought the system sucked. Then the FCC made a rather unusual move -- they drew back and announced that due to the lack of concensus, they would just let the marketplace sort it out. The Kahn/Hazeltine system was on equal legal footing. Then it was just a matter of time and confusion. Note, however, that Motorola makes chips, tons of them every day, including chips that can decode their AM stereo signal, and Kahn is not a chipmaker at all.
Converting a radio station to stereo, either kind, is a pretty expensive project. If it were not for that, I think a lot of stations would have gone with the Kahn/Hazeltine system, including for sure one I was involved with at the time, because, you know what? Not only does it work well (better, I think), but also you can take two ordinary radios and tune one off to each side, and you have stereo. You can take two old pickup trucks out in the desert and have stereo. You can't do that with the Motorola system.
Oh well. It looks like AM stereo is dead.
Then pipe started coming in from the far east; I think it was mainly from Korea. They were shipping all the pipe in 21-foot lengths, including at first some galvanized pipe painted black. The whole system went to hell in a handbasket; suddenly there was galvanized pipe installed in gas lines all over the country, and the gas suppliers had to stop using DMS. Now the odorant now used in natural gas is hardly worth the bother. It doesn't even stink!