So Apple's whole ringtone system is completely, totally, and devastatingly broken. Why would anyone possibly pay money for ringtones from iTunes when it's so incredibly easy to make your own? As Gruber said in his great and very thorough commentary, the whole Ringtone racket is just that -- a racket. There's no such thing as a "ringtone" -- a ringtone is exactly the same as a song, in a different context. The idea that studios should charge more for you to choose which 30 seconds of a song you want to listen to is complete bunk.
And if you think ringtones are a joke (and I do -- I've been rolling my own ever since my first cellphone), just wait until you hear about "ringles". Unbelievable.