Have you reported the bug?  It's not very useful to report bugs to a forum that has absolutely nothing to do with the Blender Foundation.  And it's really easy to report Blender bugs.  In my experience, if it's simple they fix it in hours.  The one time they didn't, they still told me what they were planning to do.

Oh, and just to say, I use inset all the time without problems.  I don't think I've seen the tool you're talking about.