Australian Torian is supposed to ship their innovative small portable Wi-fi radio by the end of this year.
The Infusion Wi-fi radio caught its first attention at the CES 2005. The portable internet radio can tune into radio streams when in the vicinity of a Wi-fi hotspot. The price will be $280 Australian Dollars (~215USD).
More details on Herald Sun and on the Torian site.
I think portable Satellite Radios are the better way to go. I would want to listen to radio while on the go, not while sitting at a Starbucks.
Deals on the MyFi XM2Go!