sartrik
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Well, if they allow radio, nothing will happen, but they'll definitely crack down on MP3s.
I doubt that radio will work. It only takes one copyrighted song playing for half an hour to get a stream muted.
You can find more details about this amazing new feature here - http://blog.twitch.tv/2014/08/3136/
Right now, everything is working extremely poorly; streams with music from the game being shown are getting banned. For example, someone is playing Portal 2, the in-game music is playing, and then, bam, they get muted. Perhaps something will change after tomorrow's AMA (something like a public interview) with Twitch's management. But it's not worth hoping for.