I agree with the thought that this is due in the phone OS. If not in the next update, then by way of a free script or begware. This ring tone pin prick policy from the past has to go. It goes against the core of Apple's appeal.
There are very persistent rumors that part of Wednesday's announcements will be some kind of "official" ringtone capability for the iPhone. The word is that you will be able to take any part of any song you purchased on the iTunes store and turn it into a ringtone - for a fee.
I've never understood why anyone would pay $2 for a small snippet of a song, but apparently enough people do that ringtones have become a huge source of revenue for the phone companies. That's why I believe there will never be an "official" free method of loading them on your iPhone. I suspect AT&T's agreement with Apple includes some kind of revenue-sharing from ringtones.
So, yes, iToner is very welcome indeed - especially because it works without "jailbreaking" your iPhone. I'd wait until Wednesday to see what really happens, but unless there's some kind of pleasant surprise, I suspect they will sell a lot of licenses of this software.