Here's the deal. This is an interesting app, and it would be pretty impressive, but I see people talking about two different things.
#1. App uses hardware FM radio for terrestrial reception, in background
#2. App allows Internet radio to stream and play in background
Which will it be?
I'd like BOTH. If I get either/or, I will be disappointed.
Apple should have an single-interface, with an easy option to get BOTH and for the user to be able to toggle between streaming Internet and FM reception.
Streaming Internet will be able to get reception ANYWHERE there is bandwidth, get AM stations on the 'net, while sucking up battery life and possibly encountering net congestion.
FM will depend on good reception, location, and interference, but it will be the traditional FM radio most people are used to. Both could have access to program information and link to iTunes for song purchases (when available). Realtime "pause" would be great, but not essential.
We'll see how Apple rolls this. Should be good. I think its real. If Apple pulls this off, it could be a highly unique and impressive implementation, however much the concept seems dated or late-to-the-game. It certainly continues to screw over offerings from competitors.
~ CB