What are photofonts? I've worked in graphics for 25 years and have never once heard that term.
InDesign supports OpenType, TrueType, and PostScript Type 1 fonts.
I had not heard of them either, but the possibilities are exciting. FontLab offers a program caller BitFrontier which creates bitmap fonts out of any image you want to feed it. I'd like to be able to use the fonts in InDesign, however they only have software for CS3 and CS4.