I've had DAB in E60 and F10 and always found the signal good for reception. Can't comment of fallback as I listen to BBC.
I've got the full 16 speaker option in my F10 and find the audio is much better on FM - presumably due to the compression used for DAB
To test,try programming the same station (1xDAB, 1x FM) to 2 of the " one touch programable" buttons and flick between them during any song.
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