In case you've been worried, My Avatar Editor has not been forgotten. I have been slowly fixing things, reorganizing code, (removing any references to Mii or Nintendo) and getting it ready for release.
Originally there were a couple of version blockers that stalled me, i.e. waiting for Flash Player 10 to release, then waiting for AIR to support Flash Player 10. Then I just got caught up with work and other things that just kept me from coming back to MAE, but I've finally been able to work on the editor some more bringing it closer to release.
And what does release mean? It means hopefully 1) myavatareditor.com will have the editor up and running, and 2) the SWF and all its source files will be available for download by anyone who wants them. This will allow you to edit, modify, enhance, or customize the editor any way you see fit (legally, unlike my original mistake) for personal or professional use. Currently, I see the licence being MIT.