FM radio uses the headphone cable as an antenna, so with the move to bluetooth I assume it got squashed for similar reasons. The other aspect is it assumes if you want live radio that you're happy needing an active data connection and allowance, any any local stations have a stream available. One of the things I love about streaming (via RadioDroid, etc) is that you can get a station from anywhere on the planet but sometimes you want something a bit more basic.