You are right. AM is much more easily interfered with due to noise because the amplitude of the desired signal and the noise signal are effectively added together in the front end of the receiver.
FWIW, commercial FM is transmitted using circular polarization. The antenna is typically two elements in a cross driven out of phase. This has the advantage of getting the signal through if one of the components (either the horizontal or vertical) is blocked.
FM receivers also exhibit frequency lock. Once tuned, they will reject signals that are significantly stronger than the tuned signal.
-- Andrew E. Mileski Ottawa, Canada http://isoar.ca/
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