Does the Prius stereo have HD/digital radio?

I'm not sure about the answer to your question, but it's true that I can see song info on some stations. Also there is a "Traffic" button that will scan and automatically find a traffic station for you.

 

I've seen RDS in action when visiting friends on the west side. Very cool seeing track data, call letters and even the station genre. Assuming that every radio station in a market or broadcast area chose to adopt RDS and broadcast at a very minimum their genre the radio could scan by genre and return a station that played Rock or Jazz or whatever.

But in the true tradition of all forms of media, equipment upgrades are only done when it is absolutely necessary and in many instances when new broadcast hardware is deployed it is never used to its full potential because the technicians are not necessarily fully versed with the newest of hardware. Kind of a catch 22, especially for smaller markets.