i was at the future of music dc policy conference where a representative of motorola openly talked about a service to be introduced next week at nab called "iradio." he showed a phone, one that looked like phones you've shown photos of on your site—i think it was the one quoted as the original itunes phone (a black and silver candybar shaped phone, large color screen, little camera at the top on the front) which he played "sweet home alabama" on—in stereo (the phone had speakers on each side).
the "iradio" service is a subscription radio service, but one that is more like licensed music podcasting. from the details he gave: 1) the service is not streaming based, meaning the content will be downloaded over the internet to a computer (or other device?) and then transfered to the playback device (phone & car or home stereo); 2) it will be heavily drm'd so that individual songs from a "stream" cannot be picked out; 3) the playback device (cell phone) would stream stereo audio to other devices (eg: cell phone to car stereo) over bluetooth 1.1 (i specifically asked if this would require newer bluetooth 2.0, or even 1.2 devices, and he smiled and said no, and that they were achieving transmission speeds of over 700kbs, which he said was sufficient for stereo audio); 4) that motorola was actively looking for content streams; 5) the service would be subscription based for around $4 to $6.