No, this does not solve any bug - the dummy-iap bug is in Diablo and Nokia already promised to fix it, so lets hope the mentioned workaround is not necessary with a future update.
Overall, I only recompiled stuff (wpa_supplicant and a patched cx3110x driver) for Diablo and did not develop anything myself. Maemo does not support TTLS/PAP, but wpa_supplicant does. Ideally Nokia would finally add that to their own implementation, but I needed something now. And yes, this is a well known issue, a lot of universities seem to use TTLS/PAP, there were several threads about it in the past.