[Johnny555]

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.