Last.fm now requires a paid Last.fm subscription for listening to their radio streams on mobile and home entertainment devices, such as Squeezebox players. Effective immediately, this change affects all Squeezebox players.
This change does not affect Last.fm scrobbling on a Squeezebox. Last.fm expounds further in their blog:
To continue experiencing Last.fm radio stations on your Squeezebox, upgrade to a Last.fm subscription account, starting at 3 dollar/euro/pound per month, by going to this web site:
http://www.last.fm/subscribe
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The problem is Last.fm, not Logitech. Where stations and services are available worldwide, Logitech makes them available everywhere. Where the station or service is not allowed, Logitech must honor this or violate their agreement with the content owners. So Email Last.fm. 
That said, have you tried changing your location on MySqueezeBox.com to a Last.fm allowed region? Like US or UK?
