I feel that. I had a similar question about the music player, and also the part about navigation causing the music to cut out. Searching got nothing specific per se, though a common answer is that froyo fuct it up. Disappointing because while it lacked in a lot of ways, I used the native music app for most of my listening.
Now, I did see suggestions about different music apps that *might* fix the problem. My feeling Is though that if you go down that route, you end up withmultiple audio/music apps for different situations. E.g., one for streaming via bt in the car, one for podcasts, one for shuffle...
I've had froyo for a week or two now, but havent really had time to really dig in to identify new improvements... but in just using It I'm really just finding more and more problems. I'm starting to entertain the theory that some things were fudged to get us to seek out paid apps to correct them. Don't know who would be in a position to make.this happen and gain financially, but it's almost too much to not be intentional.