A UI of an FM radio would give a more realistic feeling to driving. It can be formed by downloading files off a fm radio player of some sort.
I think FM is kinda outdated But I think I get your idea of it. The way I see it being implemented is that you add stream URLs to a list, then you can add your 6 favorite streams as presets. You can also change presets while driving by mapping keys to next/prev. Maybe even add CD/USB/music player by having a folder that you drop your MP3 files in. In a game called APB Reloaded they have even implemented a system where the music you play gets heard by other players. I would love to see that implemented when/if multiplayer gets released. However there's probably a chance for the developers getting into legal issues with big record companies.
I was thinking of a Spotify and or Itunes deal. I prefer Itunes but it would be cool to have both as an option (I sometimes listen to my Itunes music while playing). I don't know how licensing would work in said scenario though.
Spotify would be easy to do yourself. Just have it running on your computer and control it using the Spotify app on your phone. Spotify isn't available in every country though. I don't know about iTunes.