Hm... i mean... I don't see a huge difference because with last.fm you listen to your itunes and then it recommends things to you and then you listen to those things. In pandora you put in a band that you normally listen to and then it plays the bands it recommends right then and there for you and you can say, no i don't like this, and it will refine it's choices. I think it's just a different way of doing basically the same thing and depends on if you feel like being more passive or proactive in the actual choosing of which recommendations you want to listen to.
It's nice that you have the ability to tell pandora what recommendations you like and don't like.
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