I actually already built in support for switching stereo on and off when I updated my clipper and stereo generator/RDS encoder to be used in the Omnia.9sg, which does have this option. There are a few issues with this though, which is why I never added this feature:
1. Car radio's normally do this automatically. Meaning, as long as the L-R signal doesn't exceed the noise threshold, the car radio will just completely blend to mono. I never hear any stereo noise on my car radio, not even on talk stations, and not even if the reception gets weaker. My car is from 2012, a 2007 car as mentioned above might indeed behave differently, and cheap portable radio's definitely do.
2. I have a Philips radio that doesn't go back to stereo after switching to mono.
3. I have another Akai radio, which takes about half a second to switch to stereo when the pilot appears. Which means that when content is stereo, the first half second will be played in mono. *** -> Idea below
4. Say you have a portable radio and you tune to a station, and fine-tune it to sound good. Then if suddently it starts broadcasting in stereo it could sound horrible. If it had been stereo all along, you might have tuned it better, which would be good, or you might have searched for a different station, which would be bad. I'm not sure how big of an issue this is.
5. Not sure if this is true, but at an Omnia presentation a few weeks ago when we mentioned Auto Pilot (as it's called in the Omnia.9 and .9sg), one person said that some car radio's skip mono stations. I'm not sure if this is true - I do know that many car radio's will skip stations that don't have RDS, but since there are no mono stations here at all I would have to test it with my own transmitter (and then find multiple car radio's to test). If anyone knows more about this, please tell me!
So, I never implemented this due to these reasons. And because it didn't seem to be needed. But I just realized, reading Dr_Technical's post, that if you have a station that's broadcasting in mono - say - 95% of the time (with as exception jingles and ads), it might still be useful. The 2 news stations that we have here play at least one or two songs per half hour, plus ads, so I think they are still broadcasting stereo content about 25% of the time, and for a station like that I think the compatibility issues might be more problematic than the potential gain from doing this.
*** Ha! I just realized, the biggest issue when switching to stereo is that often the volume can be different because of phase cancellation effects. So, if I fix phase cancellation effects in the first second of stereo output, and then blend to not fixing it, it will be far less noticeable. And I already have a filter for that! (Stereo Image, with Phase set to 0%, start growing to 100% after 1 second). Hm, this might also be a nice feature to add to the Omnia.9sg!