Personally, I am into this for one reason. I hate iTunes Radio. Sometimes in the morning I plug in my headphones, double click the mic button on the headphones and iTunes Radio starts. All data plans are capped here in Japan so I am trying to save data. Additionally, I think the algorithm of iTunes Radio is awful. Pandora and iTunes Radio slowly bring you up to more and more main stream stuff. For example put in Converge, soon you'll have deftones, and before you know it Limp bisket (barf). Last FM was the best, put in a band you like and they slowly take you underground and introduce you to new stuff!
So if I can just never have to deal with it or better yet not have install it or delete it with a jailbreak tweak.
Otherwise I agree that having the videos in the "iPod" app was better. I find that I use the video less now.
(I know some people like iTunes Radio and that is fine. Some people also like pandora which is fine too. For me it's spotify, last fm, soundcloud and grooveshark. Different needs.)