UPDATE 2:
Okay... Apparently there were 2 versions of iTunes 11.4 and software update could differentiate between OS X 10.6.8 and 10.7+ when it downloaded iTunes to them??? I'm making this assumption because apparently the day after I allowed software update to reinstall iTunes 11.4 on my newly upgraded MacBook Pro from Snow Leopard to Lion Apple came out with iTunes 12.0.1. I only came across this because DopeyDupe's amended fix in fact DID NOT work after I re-downloaded 11.4 on Lion. So I hit the Google trail once again and ran across this Apple Support thread:
system extension cannot be used AppleUSBEthernetHost.kext
A couple of suppositions stood out in my mind. First, the main theme of the thread was to solve the issue by deleting the AppleUSBEthernetHost.kext, reload iTunes 11.4 via the downloaded version of iTunes, and restart. Second, Greg Earle on page 4 of that thread discloses that he discovered that "the new iTunes 11.4 version of the AppleUSBEthernetHost kext appears to be 64-bit only." So I went to the Apple Support Downloads page to download version 11.4 to try this fix and low and behold I discovered this:
Apple - Support - Downloads
iTunes 11.4 for OS X 10.6! When I was using 10.6.8, this is the version I must of downloaded and the kext replacement worked with this version. However, after I re-downloaded 11.4 on Lion the kext replacement did not work. So therefore Apple must of been distributing two versions of 11.4. I'm guessing a 32bit and 64bit version??? Whether this is true or not obviously I don't know. However, after I downloaded iTunes 11.4 for OS X 10.6, deleted the kext file and iTunes (http://osxdaily.com/2012/02/06/delete-itunes-mac-os-x/), reinstalled iTunes with the downloaded installer, and reloaded Fab11's kext download I once again was able to tether my iPhone to my MacBook via USB.