Makes even more sense....
TVGenius, the patent information you discovered is very interesting, and I would be interested to see what either Reuters or Bloomberg may be reporting in the next few days/weeks....
Also of note, while all posters have mentioned many diverse and interesting ways Apple might incorporate radio into the iPod, no one mentioned that you can actually buy a lanyard-like device that can be attached to your iPod already. I think the brand is Digisette, and the item is called FMXtra. The Apple store in Short Hills had it a little over 6 months ago, but when I inquired about it recently at the Menlo Park store, the salesperson had no knowledge that such a device even existed.
This also lends even more credence to what TVGenius uncovered about the patent --because, if they're planning to merge with the satelite market, they would try to disassociate from a device which would allow only FM broadcast into the iPod.
Also, does anyone recall the earliest incarnations of the Sony Walkman, where the actual AM/FM tuner was an extra cassete you could install/remove, depending on whether you wanted the tuner or cassette function?