People like the iPod because it uses iTunes... which is basically one of the easiest programs in the world... well almost... they could work on how they add songs to the library a bit... but when you change something in iTunes... its mirrored on your iPod as soon as you plug it in. It is simple.
Plus they make all sorts of neat cases, and there are a whole lot of accessories... docks... speaker systems... so on and so forth...
and who wants to record from FM anyway... FM quality is crap.