It's also interesting to see a distribution offer Razor-qt as the default desktop -- I'm looking forward to what comes out of Razor-qt's collaboration (merger) with LXDE.
A few similar services:
* Slax (a Slackware-based live CD Linux distribution) offers a build service where you can select individual packages (http://old.slax.org/build.php). I'm not sure if it has been deprecated for good with the new version of Slax being developed but it still works. Edit: From how it works it looks like Porteus was forked from Slax. I can't access their website proper right now but googling around confirms this.
* SUSE Studio (http://susestudio.com/) generates highly customizable live media images and VMs of openSUSE. Their gallery (http://susestudio.com/browse) is a nice feature. It requires registration.
Edit: I mistakingly wrote that Razor-qt is merging with XFCE rather than LXDE. Fixed.
Edit 2: While it's not strong evidence their download links (i.e., http://build.porteus.org/dl/$HASH/Porteus-RAZOR-v2.1-(i486|x...) suggest they don't pregenerate ISOs but they may cache them.