Well, after seeing the update with information from NAB, the rationale is (as we probably should have expected) "lifeline information" getting to as many people as possible. However, I don't see this making much sense. We don't require all people to carry an emergency radio with them at all times, because that would be ludicrous.
And clearly, the devices they're talking about are the Internet-connected devices that are streaming from the web rather than using radio. Unless I'm very mistaken, if the FM tuner will work (i.e. your device has power and an antenna), the Internet connectivity will also probably work. I'll grant that you have to deal with network coverage, which isn't as extensive as radio coverage, but then people living outside that coverage wouldn't have purchased the device anyway. So a preferable solution to my mind, and one that I hope someone proposes, would be a lifeline information service that streams over the Internet. Heck, make creating that federally mandated; I'd support that! I'd even be able to get behind a tiny app that can receive push notifications from this hypothetical service and warn me of danger being required by law on mobile devices. That would be less expensive, smaller, and wouldn't generate profits for the music and radio industries, while at the same time saving lives.
Someone should write that up. IANAL; anyone game?