You just have to look to those places that still value a simple and powerful pocket radio, and the best example would be Japan. Commuters need radios that work under varying conditions, and since Sony is a local company, there's plenty of pressure for an excellent high-quality product. The result is an entire lineup of portable radios that they only sell there; they're quite a lot smaller than what we consider a pocket radio, some feature metal bodies, a few feature an electronic voice that tells you where you are on the dial when switching stations so you don't even have to look down, etc.
Only a few of these show up in specialty stores that resell Japan-only electronics from time to time, and of those, the most reknown is the SRF-T615, a remarkably small all-digital pocket radio. Despite being 2.1 x 3.5 x 0.5 inches in size, it features a speaker, full stereo out headphone jack, clock with timers/alarms, noise reduction function, and seven memory positions, each with it's own button just like on a car radio. Plus all the controls are on the very top of the radio, so when you put it in your pocket, everything is right there in view/reach.
The catch of course is the price; it's a full-quality radio crammed into a very tiny form factor, so at $150, you'd better really appreciate radio. I snapped up one of these not long after they were made available and can say much like we flashaholics have the One True EDC, this has been my one true pocket radio, performing right on par with my much larger 7600GR shortwave radio and various car radios. There just isn't anything available in America that really compares. Retail page with pic and stats here:
http://www.audiocubes2.com/category/...ket_Radio.html , and here are the aforementioned awesome radios together:
