On my X10iii, tones do work, but they are not emitted to the local speaker once the call connects. (Though it does play the tones when dialing)
I find this a bit disconcerting, as I really expect to hear the tones.
An aside, I would like the phone to go into handsfree (or BT) when the keypad is activated, since I obviously can’t push buttons and hold it to my ear at the same time.
if someone would try to make this then it should be off by default. I can’t imagine that it switches automatically to speaker. Often when I need to type Tones I just type then and then place phone next to my ear to continue.
Of course I do understand that some people have different habits but if I remember I never had any phone that did automatically to speaker so I have nothing against this but it should be off by default.