Well first off I must say i'm kinda surprised smart phones such as the Iphone didn't come with the ability to pick up FM/AM radio. You would think it would be a basic app. I say surprised because the iphone/ipod basically replaced the walkman of the old days that did pick up radio stations for your listening pleasure while jogging, stuck in the backseat with your parents station playing on the car radio ect.
Now I know what your all thinking. ou can get any radio station thru apps. However they depend on a wireless internet or 3g (or whatever G your phone has) When on the road or jogging its rare to find a public wireless connection, and using 3g kills your battery. So a real non web based radio receiver would come in handy every now and then.
With that said however, it is stupid to require it, and yes I find myself streaming KYW/WIP, ect thru my Iphone on my radio, then actually listening to the stations.