i have a question why isn't this on the disk?why do i have to pay for something that's ready before the release date???

LittleBig Inferno FTW!

Either charge for it, or that it requires a harddrive to use, and making it downloadable makes people with harddrives more likely to get it.  It is also possible that this add-on came late in the cycle, after EA felt it had to do something with the game to make it competitive, which explains the late release date.  It is possible the not good sales of Bayonetta made EA feel they had to dig futher to come up with something for the game. 

What all does the level editor let you do?

It lets you make co-op maps, with your own enemy formations, when and which enemies you fight, etc. There's not much info yet.

That sounds pretty neat.

Actually, they haven't said it's "ready"....although I don't doubt they could've made it ready IN THE DISC for, let's say MARCH...but they wouldn't do that I'm sure and we all know why :P  Anyway, I bet it was ready ages ago and they decided to charge it extra because people will pay (never do something for free if you can charge for it- phisolophy, I guess) . Probably the rationale behind this is : Nobody is expecting online modes from this game, it's not its main drive, and we'll profit from those who will be interested in it. Hopefully they don't demand users to buy the DLC to be able to "platinum" the game...

I might be buying this game. I loved the demo.