That's true, it only uses GraceNote album info retrieval services if you import through iTunes. If you have access to a Windows PC or partition, I highly recommend Mp3tag. It's THE best mass-tagging solution I've found on any platform.
If you are talking about the albums covers as shown on the iphone videos, you can capture some album artwork for songs not purchased thru itunes. When I first purchased an ipod most of my music was taken from CD's I already owned. The last updated itunes has a tab labeled advanced. Click on it and also where it says album artwork and it will recover what ever art they have. I would say 85% of my songs not purchased from itunes now has the artwork. There are a few like The Eagles and only a few more do not. It must be the one for whom they do not have permission and their music are not on itunes. I could check to see if The Eagles are available but just have not done so... just assumed that's the case.
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