3G Apple iPhone & Internet Radio

We all know that Apple is planning their new upgraded iPhone. We also know that with the update coming in June users of the iPhone and iPod touch will be able to get downloadable applications on their phone and iPod. The question will be whether Apple is ready to release some of their iron grip (and revenue stream) by allowing non-Apple music services on their devices. Will Apple let FlyTunes, the iPhone Internet radio work as an application on the iPhone? Or will they release their own version of Flytunes? What do you think? Leave us a comment.