Thoughts on iPod, and Subsequently Music Streaming apps

As a student, I have many broke friends. What can I say? Money is just something that escapes us. So, the small amounts of money students do have is prioritized in many vastly different fields. That means I see a massive variety of mobile devices every day, based on how said person prioritizes their Cash. You get the kids that don't care about tech, with a Nokia. You see the spoilt brats that have their parents pay for every new iPhone available. You have the Inbetweeners, with sliders. But one thing seems to unite all the groups. Everyone has an iPod. And id say about 70% of those iPods would be the Touch. And these People all pirate their music. I don't know many people that dont, honestly.
I try to buy my own music (I just recently bought the latest Passion pit album, for example) but im not made of money. So, in theory, streaming services would be perfect for ALL these broke students. Pay a small fee (Less than an album) And get all the music you could possibly imagine. One problem. Streaming. iPods get use Everywhere. On the bus, in the classroom, and lunchtime. Wifi isnt as bountiful as you'd hope, so the once amazing, unlimited buffet of a music app is reduced to a 'No internet connection' Pop up.

This has to stop. I don't know how it can be solved, maybe apple starts its own service, puts a 3g/4g radio in the touch, offers free streaming through apples service via carrier partnership. I dont know how, but streaming services can never be as useful as Local (Read: Pirated) Files until the iPod can stream anywhere.
Also, Spare us all the lazy excuse of 'just get an iPhone'. I clearly explained at the start of the article that that's not an option. And the 4/3gs is no where near as affordable as people in america make it sound, I don't know what kind of parents are letting their kids onto two year contracts, but that Rarely happens here in Australia.