IMHO, 128k isn't enough for a 2 channel 44.1+khz stream, especially if there are elements like cymbals, castanets or words that have either an 's' or 'sh' in their spelling.
I used to listen to last.fm, until they stopped streaming from their own servers, and started mass-embedding YouTube music videos instead. Last time I tried to listen to this site, half of the songs it tries to play showed me an error, which disappeared before I could read it, as the site moved on to the next music videe. I suppose there are removed videos the site couldn't possibly know about.
As for TuneIn, there's nothing wrong with making money as long as you don't screw everyone around you in the process. Forcing listeners to log identify themselves via social media will, at the very least, lead to temptation to abuse the data these networks will inevitably give out, which might be the very reason behind this move. I can certainly see why people would be angry. I will be sure to avoid this service.