I've got portable radios. There's a reason I never listen to them anymore.
I'm guessing you will be able to achieve your exact current state if such an app is ever released.
True, which is why I'm not excited (I believe that was the question). But more than that, creeping feature bloat annoys me. I don't need my iPod to be a radio, or a camera (or even a phone for that matter). I don't need a speaker or voice controls or any of the other stuff that Apple is glomming onto iPods lately just so they can market a "new and improved" version. For my tastes just give me more capacity and a faster processor, and improve the Safari and music UIs.
Everyone's needs vary, hence the need for a diverse range of features. If you want to go back to basics there's always the iPod Classic.