The reason I suspect, for the lack of interest in including FM functionality is it's not an on-brand experience. Apple's brand is about futuristic looking luxury tech. Apple is simple. Clean lines, optimized experience. I'm not saying it always is successful in that regard, but including old-fashioned analog tech is wayyyyyyyy off brand. Radio stations hiss and go in and out of reception. Yes, digital tuners can lock onto frequencies with precision but it's still very hit or miss. Analog is "ugly" in the shiny rectangle world. While it degrades gracefully in comparison to digital streams, it's very much out of place in a device that is positioned as bleeding edge. (Can you imagine an iPhone with old style tv static on the screen? It feels out of place.) Yes I'm aware apple does NOT typically use bleeding edge tech in terms of individual components or features but they are all cohesive and generally well-orchestrated so the overall experience is perceived as relatively effortless and luxe. It's all about the brand. Apple goes out of their way to protect this image as its their greatest asset.