It alllows email login for first time, but once I am logged out. I can login to the site with either using my email or my predefined username.
It doesn't make a much difference compared to LoginToboggan. It would be interesting to see if you could change it to allow login with only email and user able to edit his/her username display, something like most social networks are applying these days.
Anyways, thanks for the modules. Hope to see a newer revision soon.