The hardware is there, but there is no antenna for it to work, so even though they got the FM radio activated etc. they had no way of actually sending/receiving FM signals, now if you wanted to open up your droid and find a way to connect the FM radio to your headphone jack then mod all the necessary files you could have FM on your droid! Doesn't sound worth it huh?
The hardware part of that would be a breeze, but the software would require me to start from scratch: I couldn't even tell you what language the phone is built on. So no, not worth it haha.