The fact you can still hear both parties trying to speak, albeit a bit garbled, is considered an advantage. Imagine if it was analog FM, only the strongest sign

The fact you can still hear both parties trying to speak, albeit a bit garbled, is considered an advantage. Imagine if it was analog FM, only the strongest signal would be heard with no indication really of collision. Also, AM signals are generally still useable at a longer distance than FM at the same transmit power.