Please see http://www.edd.state.nm.us/FILM/PROFILES/torc.htm

I was in error regarding the host of the show--it was Ralph Edwards rather than Art Linkletter.
As I recall from other reading, the town was to benefit from the publicity and an annual festival sponsored by the radio/TV company. Enough of the old timers objected to the name change that they demanded a second referendum, which resulted in an even larger number in favor of the name change. One of the selling points was the fact that there are a number of U.S. cities named Hot Springs, and this action elevated them from obscurity into the limelight.