Don't get distracted if I mention to you the developer behind this app that I'm about to tell you about, the developer's name is Rogue Amoeba.
Strange? Yup, you betcha. Even the developer's slogan written on its web site is: "Strange name. Great software." ;-)
Anyhow, Rogue Amoeba is a Mac software developer who has released Radioshift Touch for iPhone or iPod Touch (software v2.0 or above required).
According to Macworld, this $9.99 worth app gives users access to Internet radio stations over Wi-Fi, EDGE, or 3G. Using the application you can find the stream for your local radio station, listen to popular stations, or browse stations by genre. The application also features SmartStream, which automatically chooses the best available audio stream based on your current connection.