Not only are we kept from using AAC or even nude MP3 files for ringtones, we're stuck with a list of mostly bad ringtones. (I did find one I like, and it's not the one from the Macworld Keynote.) We can't even buy new ringtones, although iTunes 7.3 seems to have functionality for this hidden away.
iPhone Ringtones Kind of Bother Me (Video)
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