LN1: da Straits and da Sultanz.
I think it's important to remember how jaw-droppingly gripping this sounded coming out of KSAN back in the day, when this was an undiscovered band. I saw their first couple of gigs at The Old Waldorf, site of other debuts I saw (Elvis Costello, Tom Petty).
While I can't address the KSAN aspect, you make a good point about context. Part of my problem
with popular music in 1978 is that "rock" was largely tired and played-out, with little creativity
in evidence from many long-established bands. Punk & funk, particularly the harder core examples,
understandably didn't get much mainstream airplay. New Wave was just a tiny ripple. And disco
was very polarizing. Against that backdrop, groups like Dire Straits and The Cars sounded fresh
and exciting. Still, there was relatively little new stuff overall, and thus as soon as 1979 both
those bands were well on their way to being overplayed.