My Nissan Titan is a 2004 model and even though it has a great audio system, it doesn't have Satellite or smart technology, but I purchased a Bluetooth device that plugs into one of my cigarette lighters and I sync it to my Android phone via Bluetooth and it then transmits an FM signal to an open frequency on my FM radio. It costs me nothing per se as it just uses part of my monthly data on my AT&T cell phone bill. Once I decide what station or show that I want to listen to, something you can't do on AM or FM radio. If the show's not on the air at the time in the area you are in, you are stuck with whatever is on the local station at that time. Internet Radio allows you to find a particular station or show anywhere in the country....the world actually, so I can normally find what I want to listen to almost any time of the day or night. As a last resort, I can listen to pre-recorded podcast of a show, again something that you can't do using traditional radio.
I choose the smallest bit rate, normally 32kbps to save on the data used that month. I've never used more than my monthly limit, so it's like having Satellite radio with no additional cost. I only listen to talk radio, so no need for 128kbps or 192kbps for music. If I want to listen to music, I've got a 6 cd changer and there's always an iTunes cd that I can pop in.
Anyway......the fact is that the sound quality is at or near FM quality and easily superior to AM radio. I only occasionally listen to AM radio, but not very often as it's....well AM radio and thus the sound quality is...well AM quality.
I rarely drive out into the country so my Android's signal is almost always high quality. When I do get out of town and out into the country......if I stick to major highways, my signal is good, so thus internet radio is good. If I really get off the beaten path, then I can lose connection, but that's true also of AM & FM radio as well. In fact, when it comes to AM & FM, you can be on the interstate and have mostly static on the AM band and usually decent signals on FM, but since I don't really listen to FM as few of them have talk radio, mostly music, that's not really helpful.
The point is that you don't have to have a newer vehicle to listen to internet radio. You can do as I did, spend around $75.00 and make your old stereo and smart phone work together to get the job done. You have more options and you can listen to shows and stations from across the globe. I sometimes listen to Australian talk radio. There are around 55,000 Shoutcast stations alone and the vast majority of them are music, so you have far more choice that what you could get, even in a major American city (New York, Chicago, LA, etc.). Most of the time, 25-40% of my listeners do so via their Smart Phone.
Bottom line.........it's estimated that within 5 years, virtually every NEW auto will have smart technology to be able to listen to internet radio, without having to buy anything else, like I did. Add to this that there are far more choices on internet radio than AM or FM and you can predict where this is going over time.
If you live in a real rural area, cell coverage will be less reliable than it is in a town of any size, but then again, AM & FM has few choices in rural areas. Since there are more people in metro areas, again in the long run, internet radio will be what many people turn to.
AM & FM radio will be with us for quite a few more years, but it's just a matter of technology before they die off. Unless of course there are dramatic advances in technology that will extend broadcast range and quality of signal.