It's all about marketing and cost. Even if an AM/FM radio could have been included in the 770 and 800 for $1 more per device, that might be more than the cost-analysis guys would allow.

Adding buttons to the devices that made for easier gaming would have done three things. One, the device would be perceived as less professional by many potential customers. Two, that's extra R&D and a few extra cents added cost to the device. Three, since the device was obviously intended to be a gaming device, customers would complain when the device didn't perform well enough to play the games they ported to it.

As for other devices, like mp3 players, clock radios and such, perception makes a big difference. If you look at two clock radios, and one is larger, with larger speakers, you probably assume the larger one will sound better and have more features, everything else being equal. Companies have probably spent a lot of money getting focus groups together to compare different designs and see which ones people react more favorably to.

While technically correct, you violate the spirit of the discussion. Negative points for you!