Hello Deefoo,
To be honest, I don't believe it will have a chance at that price. With the exception of a few hardcore nerds most people will compare it to the pocket radios that sell for $20 or so at the store. Or maybe, just maybe to an iPod which I believe by that time will have come down from its current price level to capture the "hold-out market".
Much will depend on their biz model. If you can freely program it to listen to your favorite web radio stations it might work, at a lower price level though. If it's limited to a pool of select stations or requires some kind of paid subscription it'll already be dead before launch. Look where Kerbango went. I am quite sure 3COM wouldn't have dumped it if it had the potential to become a cash cow.
Regards, Joerg