My friends who like this movie often compare it to 1992s Wayne's World. The plots are almost identical: down-on-his-luck hero and goofy sidekick take to the airwaves and make it big. Here's a rundown of both movies to see where the differences lie.
Casting/Characters
Ironically the low-budget UHF has a much better cast than Wayne's World. Weird Al stars alongside Kevin McCarthy, Fran Drescher, Micheal Richards (in fact, it was his first starring role before Sienfeld), and Sopranos David Proval. Each character, while not realistic or made to be believable, has a detailed personality and the actors really show a good range.
Wayne's World is headed by Mike Meyers and Dana Carvey, both Saturday Night Live alumni, and is backed up by love interest Tia Carerre, who would go on to do a god-awful prime-time Indiana Jones ripoff and be "that kind of hot Asian chick" in a lot of movies. Despite having major studio money behind it, Wayne's World has a pretty small cast and the SNL-style comedy of Meyers and Carvey is sort of expected.
Setting
While shot entirely in California, UHF has a very clear Anytown, USA feel. The setting isn't a place that exists anywhere in the universe, but is a collection of run down buildings, crappy apartments and suburban wasteland that could potentially be your back yard.
Wayne's World takes place in LA, and that is literally all you need to know. It is a direct parody of LA culture and values in the early 90s. While most people remember 1992 as the year Bill Clinton became president and the time just before the economic prosperity of the dot com bubble, it was a pretty bad time for musicians (which Wayne and Garth are in the movie). The entire aesthetic, from Wayne's basement to Cassandra's spartan loft apartment, coupled with the constant references to 90s heavy metal, create a very bleak, bland, and downtrodden feel.
Both movies use the ambiguity (or lack thereof) of the setting to help with the...
Parody
UHF shines in its insane representation of television shows, from Stanley Spidowski's Clubhouse (where lucky children get to drink from a fire hose) to a Nature-type show which replaces a handsome, bearded woodsman with a Mexican animal hoarder who throws poodles out of windows.
Ultimately the question as to which is better comes up, but I say screw that, see them both. Each film remembers a time, not so long ago, when any schlub with a few bucks could get a cable access show and broadcast almost whatever he or she wanted to the neighborhood. Before Clinton (you heard me; look it up) gave the FCC and Clear Channel almost unlimited power to buy and regulate the price of access to radio, and before cable TV was carved up between Comcast, Verizon and a bunch of shitty satellite companies, the airwaves literally belonged to the people, and the people could use them. Nowadays, we still own the airwaves, but we better already have a couple million in the bank and an army of advertisers behind us if we want to use them for anything. Good news is that this has largely been replaced with the Internet, podcasts and You Tube, and it's easier than ever to throw together a blog, video or record yourself talking for an hour. But the Internet's great flaw is it's advancement - the instant gratification of watching anything you want at a few mouse clicks, and being able to switch content at a moment's notice or just on a whim means that any content with actual substance, length or quality (like this) is usually overshadowed by leave Brittany alone guy.
It also bears mention that Wayne's World director Penelope Spheeris also directed two utterly fantastic indie films (back when indie films were indie films, not the steaming, over-budgeted piles of cat sick like Eagle vs. Shark) called The Decline of Western Civilization and Suburbia. The former is a music-themed look at American in the 80s. The latter is a story of kids living in abandoned homes in a mid-western housing development, and while it does have the unholy taint of Roger Corman, it is thoughtful, heartbreaking, and has an ending that makes you yell, "Holy shit what the fuck just happened!?" in the best possible way.
Addendum
While many people like the humor of Wayne's World and the punk feel of Decline..., Suburbia went largely under the radar. If you read this and decide to see it, fair warning: there are some seriously gratuitous, violent and deeply disturbing scenes, one of them in the first five minutes. It is not for the faint of heart.