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You are just getting the satellite radio experience. The box for Sirius might have been doing some reprocessing to improve how it sounded, but FM is leaps and bounds better than satellite when it comes to sound quality.
Some math:
Satellite radio has roughly 5 megabits per second of broadcasting bandwidth.
5 megabits per second = 5120 kilobits per second
5120 Kbps / 156 channels on XM = 32.8 Kbps per channel
Now, they claim to use some advanced compression, but 32.8 per channel is a horribly low number, and there is no way you are going to get quality sound.
For an MP3, which is admittidly not as advanced of compression as what Sirius/XM use, it takes 256Kbps for the average human ear to not be able to tell the difference between the compressed audio and CD quality.
Allowing for the increased efficiency of the satellite compression, maybe 160Kbps (arbitrary number...but probably not too far off) might equal CD. In that case you're getting only 20% of CD quality.
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Toyotas in the family/next of kin:
1982 Corolla Wagon, 1989 Corolla DX, 1991 Previa LE, 1993 Previa LE,
1993 Pickup, 1994 Corolla DX, 1995 Avalon XL, 1996 Camry XLE, 1998 Avalon XL,
1998 Sienna CE, 1999 Camry XL, 2000 Camry XLE, 2002 Tundra, 2003 Tundra,
2003 ES 300, 2004 Camry XLE, 2005 Tacoma
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