New Genius Feature is NOT Like Pandora!

I keep hearing that the new Genius feature in the new iTunes 8 works just like Pandora radio.
That is not true. From the user point of view: when use Pandora I do not need to pay for tracks Pandora suggests. With the iTunes, I do.
The principle of the way Genius runs is more reminiscent of Netflix, where the recommendations are based on what other users that rated the same movies you did the same way you did, say about those movies that you haven't rated yet. Pandora, on the other hand actually knows what the artists or songs specifics and unique features are.