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I have the Premium subscription best $10/month I've ever spent.

No ads, more music, download of playlists, better audio quality, dont have to sync files from my computer to the phone, can just download and stream them on the phone itself online or off, artists get paid more for premium streams than free ones

i have a droid 2 lol you don't need the latest and greatest phone the app works the same for pretty much all smartphones or mp3 players that run on either iOS or Android (so like ipod touches or the samsung galaxy player)

Does it have any advantages over Pandora for people who don't stream music on mobile devices?

Humn, interesting. I actually like the radio format of Pandora because I don't have to sit there and think of what I want to listen to, just what kind of thing I want to listen to. My stations are so customized it probably wouldn't make sense for me to switch to spotify for radio, but I'll check it out for if someone recommends an album (with no feat. on it, forget that junk).