Could it be a device that also lets you browse photos, read the news, check the weather, and connect you to your friends through Facebook and Twitter?
Why yes it could. Assuming you have $400 to spend.
Witness the PURE Sensia Touchscreen Radio.
Is this a radio you'll find on every nightstand some day? Of course not. It's a niche product for a niche audience.
But it does illustrate something that's really important to understand: Although we may wish for advancements in radio technology to be defined in terms of what's ON our dial (e.g., new stations or HD), it's infinitely more likely that advancements in radio technology will constitute feature and interface transformations which push the boundaries of what "radio" means rather than slide alongside us on the same bands where we find FM and AM.
Consider the possibility that "radio for the Facebook generation" will be a different kind of radio, not just a radio with a different set of content on it.