Hello,
What is attempted to be done is trying to "make a silk purse out of a sow's ear". No Sony portable FM radio has impressed me RF-wise: overloading, mixing products all over the dial. These mixing products in some cases interfere with medium strength stations and can even cause an increase in background noise with strong stations. These problems are the results of low current, simple mixers. At the voltages and currents present on the type of radio being discussed it is difficult to get quality RF performance. The best solution is to use chips with balanced mixers -- not all portable radios use them. Some Sangean and the Tivoli PAL use them. The Sony's do not.
Soundwise, most portable radios are hampered by constant background hiss. The Tivoli PAL, the new Sangean DT-210V, and the Sony ICF-SW7600GR has sufficiently low back ground hiss.
The trick is to find a radio with balanced mixers and low background hiss as a starting point for any quality upgrade.
The Tivoli PAL satisfies on both counts. However, it isn't small or digital and has some tuning quirks of its own (AFC on FM, for example).
I believe there is a huge hole in the market for quality portable radios of "audiophile quality".
Best regards,
Paul