It's definitely a patch, not ITF.
I've used them, it gives me something to do while I wait and wait and wait for my game to load. My laptop can handle it for now, but I suspect it's causing the game to take more time to start. I also don't get very many points out of it, certainly not enough for an instant LTR of any size, even if I start with a single sim.
Anyway, it is technically free LTHP, but it's not anything close to a game breaker, at least in my game. I personally wouldn't be all that upset if it were banned just because I don't really get anything out of it, but at the same time I don't really see reason to ban the loading screens when so many other methods of obtaining points, wealth, etc. are allowed.