Can some shed some light on what does iPwner do?

I have done the steps of creating the custom image, which is just a way of packaging different modules into the ipsw wrapper (zip file really).

So when you hit iPwner switch and point the file you created -- what does it do ?
It says keep the phone connected, however I have never seen the phone blink on this step.

It does kill iTunes -- possibly to update something-- question is what ?

But people have been using "custom" ipsw files generated and downloaded from the net -- how does that work then.

Any relevant info will help

it pwns itunes so you can install the pwned firmware as far as i know