I think there's many cars still using FM, most actually. This would mean people would have to upgrade their car radio or start listening to CD's, if their current radio is equipped for that. And what about work places? There's enough around that just use a cheap FM radio to listen to some tunes in the background.
I can definitely understand this decision being badly received.
CDs or streaming radio :)
I agree that streaming is nice when driving, but remember that we have a lot of bad weather here in Norway. If I am to cross one of the large mountain ranges in winter, I for sure want to listen to the radio on the way there to make sure it is still open for driving etc.
Speaking as a Norwegian who is currently experiencing these issues; the car radios are a big problem. The government simply urges people to buy adapters, which are not all that expensive, so I think that is what most people are doing.