You forgot about AOL Radio on the iPhone which is getting positive reviews. Given CBS Radio's relationship with AOL, you can't say that CBS radio isn't available on the iPhone. The content is there, just branded as AOL Radio.
Not only did this issue affect purchasers of the new 3G iPhone, but it also impacted existing iPhone owners who were trying to upgrade to iPhone 2.0. My iPhone was effectively an expensive paperwork for much of the day. I was finally able to complete the 2.0 upgrade with a connection to iTunes at 4:00 pm this afternoon. Quite disconcerting to go most of the day without a mobile phone and mobile e-mail. I would have expected Apple to learn from previous experience and ensure they had sufficient server bandwidth to handle the anticipated upgrade demand as well as the anticipated new registration demand. Unfortunately, all will likely be forgotten by next week...until the next major software upgrade.