To be fair, the "fancy website" is a byproduct of designers who like to make stuff look good, and the rest of Showoff's team caring very much about not just making stuff that works (of which they make a lot, much of which is hidden away in obscurity), but about making it easy for people to use who wouldn't perhaps take on the task themselves—and I don't think there is anything at all wrong with that.
However, I don't think it is fair to imply creating this tool (and its website) was a product of caring about money, or duplicating and obscuring your (or anyone else's) efforts. It is like many other ideas out there that came from a real need, hacking it together, and then asking if people might find it useful enough to pay for it. That's not a reason to disparage or diminish a job well done.
In the end, it looks like Showoff's also brought attention to your project, pagekite, and plenty of other ways people have shared to do the same thing. Today was the first time I'd heard of localtunnel, but I've done this same bit of showing off localhost before for clients and coworkers on my own--and it's a bit like splitting hairs to call it duplication. Hackers hack. It's what we do. I definitely like open sourcing when it makes sense. But I also like to eat and have a roof over my head. Open source does not hold a monopoly on good intentions.