Is The FM tuner obsolete?

Nope …no worries

FM broadcasts over-the-air is alive and well as evidenced by both (I) the auto industry and OTA station broadcasts in major centres here in NA and (2) also more so in Europe. The DAB broadcast format in the UK is great … a shame it was a stillborn broadcast platform here in NA. 
With a quality external FM antenna feeding a high-end FM tuner with a good broadcast FM signal , I get CD / near-CD uncompressed audio quality FM reception that comparatively smokes compressed format free streaming .

I have a $7k digital streamer/DAC/digital player as part of a $60K system but I will still cheerfully default to an OTA FM broadcast with a fully rebuilt and upgraded top FM tuner (… see https://www.fmtunerinfo.com ) whenever possible.

I'm fortunate to get good reception of KUSC (91.5 FM), which provides high-quality classical music 24/7 with no commercials. The sound quality on my upgraded Magnum Dynalab FT-101A is better than CD playback. It will be a sad day if the station pulls the plug.

very happy with my modded vintage tuners and a couple of good local stations...

I still use my tube HH Scott for FM and a tube Zeneth Trans Oceanic for AM (baseball) and Shortwave. For FM, the stations in Europe are by far better than in the States. Probably because they get so much government funding.

I got a Magnum Dynalab MD108T last week. I upgraded from a MD102. I have a great local station that actually sounds good and plays the most incredible music. A lot of stuff I have never heard before. I listen a minimum of 3 hours a day to FM (9AM -12PM) and now that I have this incredible sounding tuner I am cutting into some of my streaming time in the evening. 

A great thing about radio is the discovery of new music and the lack of thought as to what to listen too next.