I've had a look around for some info on this one, but have come up blank too.
You shouldn't have to downgrade - it definitely should still work.

Changing the settings from headphones to speaker in the fmradio app issues a dbus call force_loudspeaker_on/off, and toggles a value in the gconf.

If you're familiar with the terminal please go in there and type This should run the app as you're familiar with it, and then when you try to switch between headphones and speakers you should get a little more information.
On my working system I get
And when I check the flags in gconf with:
I see that the speaker entry is toggled between 1 and 0.

Have a look and get back to us - someone may be able to help with more information.