If you're goal is to listen to good music that sounds good you will opt for decent car stereo that either has or has been aftermarket wired to have an auxiliary line input.
One of the things that pleases audiophiles about the iPod is that they get better quality with Apple's proprietary sound codecs or with wave files than is possible with MP3. That said, I've met few sound systems and fewer people who can tell the difference. My daughter, for example, is perfectly happy with a 128-bit quality MP3 file played through the speaker on her phone.
Radio stations spend thousands of dollars to broadcast FM and buy all the wattage they can afford to do it. Still, FM radio has a limited Signal to Noise ratio of about 50-60 db. This means that a pure note of music will only be 60 decibels louder than the background noise. A CD (wave format) is 90 decibels louder than its background noise and remember that the decibel level is geometric, not arithmetic i.e.; 61 decibels is twice as good as 60, 62 twice 61, etc.
Another difference, the human ear can generally hear sounds (pitches) as low as 20 hz and as high as 20,000 hz. FM broadcasts in a spectrum mostly between 55-15000 hz. What you miss are the acoustic overtones that make live music such a great experience.
So what does all this mean? If you love your music you invest in a sound system that can play the entire audio spectrum with minimal distortion and an amplifier capable of a 90db signal to noise ratio. You will attach your music source by cable (copper or fiber, analog or digital) and code you music to best quality you can afford and will play pretty much anywhere.
Turn off the radio! Turn on some music!
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