I didn't think that religious associated stations were hogging LPFM allocations either. I've not looked at format totals (I don't think I could find those statistics), but in website searches, most stations seem to be volunteer run-community oriented, and connected with schools.
What I thought it might be is that analysts are confusing translators with LPFM stations, as both are in the low power class, and both types of station seemed to pop up on radio dials at the same time. LPFM was first when spacing rules were changed, and then soon after, the translator window was opened for AM stations.
It also seems that most religious stations are national network affiliates, which wouldn't fit the LPFM model of originating local programming.
I still think there is enough God casters. If ever there is going to be a service on AM with some relaxed rules for hobby broadcasting such as may be no ground lead rule and no antenna length rule I think we should have other types of radio stations on that service besides a bunch of God casters.
in the early days of part 15 broadcasting on the am broadcast band you had users like Kentucky fried Chicken using it simply to advertise. That did not go too well with the general public. And if you remember some of those radio stations got reported for breaking certain rules.
We already know what 10 watts on am does because of The travelers information stations so I think something between 100 milliwatts and 5 watts would be fine simply getting rid of the restricted antenna length and ground length would do quite nicely even at a hundred milliwatts.