Well, this could go on for a while in fascinating fashion, but...
Yes, clearly, there's some Tutu modding going on, including two "Hey, wow, better fleshed out than those BG1 NPCs!" NPCs, of course the fact that it is the reference platform for BG1Banter, and so on.
Might an Iron Modder event encourage more people to learn the ins and outs of Tutu modding? Possibly, possibly. It would be more of a logistical headache than a BG2 IM, though, because of the research the modders would have to do in order to know the intricacies of Tutu modding (Area names, DLG names, various other resource names, etc.) as well as finding a few judges who can properly install Tutu so that they can fairly evaluate the mods...
If there was a clamor, or at least a reasonable murmur, I'd consider doing it as a special event.