I have the same issue with my Bionic but was wondering if the 2.3.4 OS has anything to do with it? Meaning, maybe some apps don't run/install well over the most current version of Gingerbread...just a thought.
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If you download one of the third party audio managers in the marketplace, you can adjust an item called System Volume. This item directly affected the touch tone volume for me. However it only adjust it from completely muted up to very faint.
I used an app called Sound Manager. Any luck with this using other settings?
I noticed that the other Motorola and Samsung phones seems to have similar issues with touch tone volume but the HTC and LG phones did not... their touch tones were nice and loud.
My dial pad volume was fine until yesterday. Same thing today; no volume. Barely audible if you hold it up to your ear. Used audio manager to up the system volume. Dial pad is audible now, but not full volume. Something happened with these phones.