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I could imagine a ferrite loop stick antenna would take up a lot of space and be quite heavy in something as small and light as a modern cell phone and the AM signal would be hopelessly full of noise due to the proximity of various busses, CPU & memory clocks, etc. I imagine it would be a nightmare to incorporate such a feature and loose all that noise simply because of the decoding method and harmonics and proximity to the noise sources. FM is just much simpler to implement. Why it's not is probably based on cost, and no return for carriers -this is business kiddies. Corporate Voice: Why should we spend a penny to give someone access to an ad supported service they don't need and "we" don't make a profit from?
Back in the day, somewhere between the end of the dinosaurs and cell phones the size of lunch pails -near the discovery time of easily reproduceable fire, we used to play rudimentary "tunes" on an AM radio by controlling the length of loops and inserting waits or NOPs in machine code to produce various frequencies and "notes" before sound chips and sound cards came along... Yes, at times we were all hopelessly lame nerds, but we had fun and learned about how things actually work at the core level.
It was a lot more fun about a year or so later when I secured the parts and built an allophone based speech synthesizer which had an oddly scottish "accent."
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