ITunes 7.4 is now available

Question

http://www.apple.com/itunes/download/
With iTunes 7.4, sync your favorite music and more with the new iPod nano (third generation), iPod classic, and iPod touch, plus create custom ringtones exclusively for iPhone with many of your favorite songs purchased from the iTunes Store. You can now also play purchased videos with closed captioning (when available), easily rate your favorite albums from one to five stars, and watch videos at a larger size inside the iTunes window.

Answer 1

I know this is not going to be what you all want to hear but you are forgetting (or are unaware) that a ringtone is a separate item from a song as far a copyright laws are concerned. Just because you purchased a song does not give you legal right to use it as a ringtone. The artists and music labels make separate agreements with ringtone sellers (like Verizon, AT & T and now Apple) for the right for their music to be sold as ringtones for which they receive and are entitled to additional compensation.
Instead of being angry at Apple about they way they have set this up, you should be happy that they have made an agreement that allows us, for the total cost of $1.98, to buy both the full song and a custom ringtone (you get to choose the 30 second segment you want for your ringtone). To legally purchase ringtones from the other cell phone providers, it costs $2.49 or more to own only a 30 second clip of the song.
So you can all continue to bend the rules but stop criticizing Apple for coming up with a very creative (as usual), economical, easy and legal way to get more ringtones on our iPhones.