Pretty sure you don't get AM because of how big the antenna would be, plus the fact that AM tends to be especially directional. It's hard to get Apple-quality AM into something that small. Even a dedicated portable radio often has trouble. I feel your pain, though. I'm going to an NFL game tomorrow, and would like to listen to the live radio broadcast on, you guessed it, AM.
The nano is a great pure iPod. I enjoy having one for the car for podcasting and audiobooks. I've had all but the 2nd and 4th gen nano, and I've got to say that this new design is pretty good. I'm not sure you can beat the 5th gen. The 5th gen had physical controls (you pause a lot while driving, and no look pausing is *very* important), camera, even decent games -- with the accelerometer or whatever it is, they had a neat ball tilting game that, though it ate battery like mad, was lots of fun. That version of the nano has yet to be beat.
But this comes close to matching the 5th gen. Has video and a dedicated pause button, so great pure iPod audio and video. If I needed bluetooth, it'd be an improvement, obviously. Otherwise, still a step backwards from the 5th gen for now, but if you can later sync/shop via bluetooth or they add WiFi, it'll finally start going places.
And for the guy suggesting a Zune... Why not get a used 5th gen nano? Sheesh. ;)







