IF it is indeed true that you can't load your own songs as ringtones, it is likely that Apple's deal with the record labels was that the iTunes software would not allow the transfer of songs to phones as ringtones. This explains why even songs ripped from CDs won't be allowed: the limitation is on iTunes itself.
The reason other phones do it and the iPhone doesn't is that other phone manufacturers aren't also music distributors (except Sony, I guess...)
The reason other phones do it and the iPhone doesn't is that other phone manufacturers aren't also music distributors (except Sony, I guess...)