By posting this, I'm undoing some much-needed moderation I already did on this thread, but nobody's said anything about it so I gotta do it.
Squeezebox RADIO. No, not a Squeezebox, a Squeezebox RADIO.
http://www.logitechsqueezebox.com/products/squeezebox-radio.html
Knobs. Buttons. A little display. Wired and wireless Ethernet. A powerful loudspeaker.
Quote: If only I could just hit the power switch, and then turn a knob to the "KGO" station... ? I'd be pretty likely to buy something like this.
And I did exactly that a couple months ago. Drove over to my local big box electronics retailer and drove home with a Logitech Squeezebox Radio (it was definitely hard to find in the store, though, since it straddles the world of boomboxes/radios and internet gear).
At $150 it's not really that cheap, but it does exactly what many people here are clamoring for: gives them SIMPLE one-button access to internet radio, without having to fire up a full-blown PC app. I bought it for my elderly father, and have a preset button (a hardware button) set to KCBS (San Francisco), WINS (New York), an internet station that plays Celtic tunes, and so forth. Two button presses (power + preset) and he's got the sound filling the room, and the PC can stay off.
And soon the battery module will be available for sale and he'll be able to carry the radio around, even.
This is a solved problem, folks. Go buy one for your elderly relative.