It is not taking long for creative productive applications to emerge for a device some people have categorized as only a media consumption device.
Looks like a fun way to experiment with beatbox tunes as the next generation of garageband.
I also think the magical piano from the same Smule developers that came up with the OCarina iPhone app that turned the iPhone into a flute is pretty cool. Not only is magical piano another innovative musical creation it is a way of learning and playing the piano that has network capabilities which allow you to play with other pianists. See the magic piano demo.