Install a fresh rom, with no radio tweaks.
Put on streaming radio, drive into a 3g dead zone, drive out of the dead zone and watch your signal return and music resume. Normal. of course.
Now trigger a radio change, either manually or automatic, with an app or without and repeat the above. What happens is when you entered the dead zone, and came out, the phone would stick and not reconnect. Instead of dropping to 1x or trying to reconnect, it simply got stuck, probably trying to trigger GSM. When sitting on my nightstand, my phone loses 3G a few times a night, so it was easy to test this, it just took me overnight to do so. I spent a week back and forth replicating the results over and over, with various roms and apps.
Keep in mind, Virgin has supposedly done some work on this (remember that big outtage for system maintenance?) so it may not have an effect anymore. I haven't checked, I simply avoid those apps, but it showed me there was something to that menu.
More:
According to Linx2cross, Froyo does not allow apps to turn on and off the radio completely directly. I'm not sure how true this is, but if true, that would explain why they all use that menu. He too was having the same issues and found it was the apps causing the problems.
TVCSS also came to the same conclusion about that menu being an issue.