Yep, the iter svg is one of the included mods. I felt it was ok to include it since it doesn't contain any TE intellectual property. The tape does however, so I'm not quite comfortable in just including the modded SVG in my tool.
I've been thinking of creating an entirely custom tape graphic, but then again I would like to reuse the TE font, synth, drum and sequencer icons and the playback icons too. Otherwise it would look out of place... I'm not sure what to do because I really want to avoid legal issues. One option might be to write code that just makes changes to the original tape SVG so that I don't need to distribute the complete file at all...
EDIT: The modded tape.svg is 21.7Kb (the original is 18.7Kb)