So here and here,
We have determined the information expressed in an AM signal comes from the fact that the amplitude of electromagnetic energy at any given frequency determines the amplitude of sound coming from the speaker. The fact that there is no energy at a particular frequency is part of the equation. The lack of energy in one part and the emphasis of energy in other parts of the bandwidth encodes the information
This makes AM very subject to broadband impulse energy, lightning strikes, etc. because the receiver cannot discriminate between that noise and the signal transmitted by the sending station.
So then We have FM. Here and here What is the basic difference between AM and FM radio?
So, my question.
If we used to encode information by varying the amplitude of a range of RF frequencies, and now we encode information by just varying whether a constant amplitude frequency is present in the RF energy
Aren't we just saying that we determined the amplitude changes to be a noisy encoding channel, and we quit using them? Isn't this wasting information carrying capacity? We used to encode information there.
**UPDATE Based on the comments below, I had another epiphany. FM is basically an error correcting protocol. Just like a CRC , that wastes information capacity due to redundancy, but ensures message correctness. FM wastes capacity, but ensures correctness.