it's a kneefall to Spotify/apple music/youtube music
That seems unlikely, radio (even Satellite radio) is not the same product as streaming music. My car has an AM/FM radio, the only thing I've ever used it for is tuning in to roadside traffic alerts when the sign is lit. The car came with 6 months of XM/Sirius satellite radio -- I tried out the Satellite Radio on a long road trip but didn't last a day before I went back to Spotify where I have full control over the music that's playing and can skip and rewind songs at will.
I don't think streaming music has anything to fear from FM radio on phones, I think the reason phones don't still offer it as a feature is because no one wants it.
I know about an Italian law from 2017 mandating that "all devices with FM radio must also receive Dab + services" [1]. Phones with only a FM chip obviously don't receive digital radio so I remember that as unintended (?) consequence Samsung was releasing updates to disable the chip. However the FM radio in my A40 still works.