While the idea of forcing FM chips into cell phones is ridiculous, you’re wrong about it being useless. My current (and previous) phone has an FM chip which I use everyday at work to listen to a DC sports talk station (106.7). If I get bored listening to the radio, I use it as an mp3 player. I can also use the SlingPlayer on it to watch TV.
While you may not use it, lots of people like me consider it a useful feature.
That's not the issue.
FM chips are fine. But if the government requires them, then I would like to see the broadcasting industry go bankrupt.