Honestly, I don't even consider Apple in the picture, although they are obviously making money on it.
I simply like to treat others the way I would like to be treated, and if it were my music, I'd want people to pay for a ringtone.
If it is music you own the rights to, then it becomes more an issue of convenience -- Apple has chosen to lock their system to some extent and leverage their ipod/iPhone/iTMS platform.
This is hardly new for them.
Well it locks it a bit tighter with the iPhone. At least with my iPods in no way did I ever felt punished by Apple that I purchased CD's. I was able to import my music into iTunes and all was good.
Now with the iPhone there is a feature I am unable to use unless I purchase music from iTunes.
How many times do I have to buy some of these songs!?!?!? I even still own many of the songs on cassette, CD, and now I'm suppose to buy it again. Sigh.....