First of all, iTunes the computer program is the all-encompassing portal to content from Apple. Not only do you acquire content through iTunes, but you can also listen to your audio selections with the same program. On the iPad, however, iTunes is merely the place where you purchase your music and movies. but when you want to play your music or podcasts, you have to use the iPod app. And when you want to acquire apps, you go to the App Store, not iTunes. I do agree that using the same name for two different things can be confusing... at first.
As far as the iTunes PC program being more functional just because it can do more is really a hollow complaint IMHO. The iPad was not meant to replace your personal computer or laptop. It is a consumption device. If you want to "consume" streaming audio, there are several apps that allow you to do this. Some are free and some cost a few dollars. When you add them up, they give me far more choices than the Radio option on the iTunes computer program.
I think the fact that you consider this a failure on Apple's part means you haven't fully researched the iPad and its capabilities.
