What a load of bullshit. I'm not sure what frequencies emergency services use, but they are probably not right bang in the middle of the commercial FM range. I played on one round here a few years back, and the guy who ran it was a bit of a radio genius, his pirate station had a better signal than alot of the commercial ones around here. Not so much in terms of strength (tho it was definately strong), but it didnt bleed over into other frequency ranges, at all. Unfortunatey after running it for many years he was finally busted in such a way that if he ever does it again he would go to prison for awhile.
I reckon it would be cool to start a pirate TV station when the digital switchover happens. Obviously most people will still have analog capabilities, and all that bandwidth will be left wide open.