Maybe the entry level radio needs to be easy to navigate. It's setup to be more like a media player, you press play to scan, you use the arrows to navigate through menus, just like my SanDisk player. It's small, just like a media player, and works with one handed operation, this is attractive too.
If the entire database is available, the user should be able to navigate to their closest state/county/city/agency, select it as a playlist, then hear the system. Too many entry level users are baffled by the menu systems of the new radios. This could be an easer way to get them scanning fairly painlessly.
Once the radio hits the mass market via RadioShack, we'll see what the everyday user thinks. After all, that is the market it appears they are looking for, not the super-user.
On a digital version, top of the line, I would want a keypad for direct entry in addition to select/navagation buttons. In the field, you may not want to carry a laptop around to add or edit the database, or alpha-tags.