Lax is the author of Innerspace & ISXwarden (up until it got so many people banned that its been basically discontinued) so its very disingenious to claim that Innerspace is squeeky clean. ISXWow was done by another set of people. ISXWow provided a set of functions for botters to access WoW internals; ISXWarden hid ISXWow and Innerspace from Warden.

There was a banwave that caught just Innerspace users, it happened the same time when Blizzard banned users who were running WoW under Linux. They reversed most of these bans if the user emailed account-admin, but they never explicity came out and said Innerspace is ok.

Go ahead and post on the WoW customer support forums and ask if WinEQ2/Innerspace is ok, you will not get a positive answer. They have posted that Keyclone is currently ok, as long as its not used to automate WoW.

Innerspace is a very nice and powerful product, but it was marketed originally as a bot platform for Windows games. Lax lost most of his WoW customers over the last few months as all got banned by Blizzard, repeatedly. Now he is trying to repurpose Innerspace as a multibox platform (new web page I see came up today), but I'd personally be careful of using it given its past history.

FWIW I have used Innerspace in the past, have a Keyclone license, and currently use Octopus. All are nice and powerful products, but you are running huge risks with your account if you decide to use Innerspace.