We designed in the ability to record from tuner or auxilliary with the Mk.2 player. There isn't any software support yet, and it's of limited usefulness as the sample rate is fairly low and the source must be that currently selected before it can be recorded. Therefore you can't, for example, record the radio whilst listening to MP3's, but you could record the radio whilst the player is in standby.
Licencing isn't an issue if we don't compress the resultant audio (or, at least, not into a proprietry format). Data could only be written to the scratch partition as it's a "bad thing" to mount the music partition for writing whilst on the move. This restricts the amount of audio that could be recorded, and probably restricts such functionality to the player software (nothing else should touch the scratch partition).
Useful applications could include recording TA (traffic announcements on RDS) during the 30 minute period before you start your daily commute, or recording voice memos using the microphone. In practice, don't hold your breath.
Rob