iPOD in the car + Satellite Radio =
A SIRRIUS one-two Punch to Regular Radio... and yes, the pun was intended.
Why is the combo so good?
iPod = All the music you want to hear + specific news topics that interest you (as in Podcasts)
Satellite Radio = your source for New Music, national/world/sometimes local news + TIVO-like controls for pausing/fast forwarding/rewinding up to 40 minutes of the show (some radio's don't do this at all, some may do it for longer)...
I have this set-up in my car, and the regular terrestrial radio gets less than 1% of the play-time during my drives. That 1% is totally comprised of listening to a local news station whenever there's a traffic jam or some seriously bad looking weather floating on the horizon of where I'm heading. Other than that, iPod and Sirrius combine to give you an unprecedented level of control over what you can choose to listen to.
It's sort of like getting to be your own station manager via iTunes and your Satellite pre-sets.
Here's another perspective on how this works against regular radio... and their advertisers.
I'll listen to regular radio, and suffer through the ads if and only if there's extremely poor satellite reception AND I forget to grab my iPod before I leave the house.
I know, not everyone will adopt this same arrangement of iPod and Satellite... but this article is pointing to the fact that more and more car manufacturers are supporting Satellite radio units as OEM, and getting on board with iPod-specific connections as well. At least then, maybe things are trending towards regular radio becoming more and more obscure.
Driving with iPod: Threat to Radio or Satellite?