You hit it on the nose, the major diagreement has to do with giving the stations the full 19Mb. Cox just wants the HD signals, to save bandwidth. There are other things in the future such as interactive TV, and other things that most stations would like to have the right to reserve the space for. Multicasting (such as KPTS is doing) can be done well also, depending on the content (sports vs talking heads) and equipment. Both sides have valid points.
All this aside, this battle is beyond our local stations, and is being negotiated by our corporate lawyers and Cox's corporate lawyers. I assume the same is being done at the other local stations, and will be resolved by the corporate groups one at a time. It's out of our hands here, as far as I understand.
That's all that I know, and I'm sure there is a lot more to the issue we don't know about. Just know that we share in your frustration. Our goal is to get as many eyeballs watching our stations as possible, and this situation doesn't help. I haven't heard anything in the past few months, I will check and see if there is any new information.