Hehe, I see this topic got a bit hotter I am glad you guys take part and put your opinion.
As an Aplpe customer, it is interesting to me what other Apple user think, so thank you.
I did try to look at the Apple's idea submissin policy, and there is no where to be found a direct link nor email, that is solely dedicated to suggestions. Anyways, I did trust Steve and his ideas, and i hope the successors will not mess it up, and keep their minds and vision clear!
Back to the FM, as I said, there is no hardware redesing of any kind needed, and it is in fact only software update, that has to include the respective drivers for the FM module, to be able to process the FM signal and pass it to the already available amplifiers and to the audio output.
FM on-chip is included in the iPhone since iPhone 4, for those who did not know (its digital, not analogue - "modualr747"). I know in US, the FM reception is not good at all (lived there for years), but in EU and rest of world, FM is not going away soon, and its is also used for the GPS RDS traffic updates, so FM band will stay for at least another 20 years.
From Apple's prespective, and I think they only see it from US part of the ocean, FM is a low quality service, due to it antenna requirements and available coverage, and will cause negative marketing results. Anyhow, wish you all nice week, and keep the comments coming.
Here is a link of the iPhone tear down, and you can see the chip includes the FM build-in already:
http://www.ifixit.com/Teardown/iPhone-4-Teardown/3130/3
And here is a link, to see how a FM receivere looks like these days:
http://www.sparkfun.com/products/10344
Regards
RE iPod Nano: True, ita has FM receiver, but the chip is different and dedicated only to FM. Due to its design (Nano's) and power source, not a powerful enough amplifier and filters can be added to it (these days) to improve the FM reception, hence..the bad quality you have expereinced. FM was never the primary use of iPods anyways.