I would argue that the Apple iPhone is to this day a flawed product (flawed differently than an Android, Blackberry or Windows Phone, but flawed nonetheless). If Jobs had a love of HD for some reason, it would have been in the phone and it would be the user's fault when it didn't work right. (Remember antennagate?)
The problem is that radio is a white bread appliance to that 90% of the people who use it. Radio is a toaster or vacuum cleaner, not something one desires, just something one has and uses and thinks nothing about.
That's not to say that appliances can't be desired; Toyota gussied up a Camry and called it a Lexus and made it work, Dyson makes vacuums and fans that have a following. Even some radio stations garner fervant fans (witness the death and copy-rebirth of my local CHR WABB in Mobile for example). But by and large HD was a widget to an appliance that no one saw a need for.