In reply to:
Digital radio, on the other hand, would be a standard. It (presumably) wouldn't be encrypted, and somebody would quickly make a tuner with a digital S/PDIF output. Still, unless it's being broadcast in MP3 format, then it would need to be transcoded to be useful to file traders. It's easier to just rip high-quality MP3s from a CD.
You're right, digital radio is standardised, and some (but not all) DAB receivers have digital outputs. My home set has TOSlink, though I haven't connected it, as I'm happy with the analogue co-ax connections, TBH.
I
think DAB uses MP2 or MP3, but possibly I'm wrong and it's some other MPEG audio standard. Stations here vary from 80kbps or less (mostly speech channels) to about 160 or so for music channels. So not competition for CDs, but much better than analogue broadcast.
I'd say no more appealing to record off the radio than the introduction of cassette tapes - and the presenters still talk over the music.
The record companies probably pay them to do that....