I got some time to spend with my iPod touch and new Akai Synthstation 25 and NanoStudio. This combination works very well for the performing aspects of a song. The Synthstation is nice in that it has a pitch bend wheel and Mod wheel (but no knobs or drum pads).
I found the actual editing and sequencer tasks to be a bit maddening and I decided to finish the tune on the iPad rather than on the SynthStation/iPod combo. I think overall, I prefer the iPad for sound creation - it is very hard to control the small screen of the iPod and the battery life is much lower than the iPad.
To make full use of NanoStudio, I decided to try a piece in 5/4 time. This forced me to play the tracks one by one and was really quite fun - not Brubeck worthy but I like the result!
Anyway, one more example from an iPod/iPad only effort - comments are welcome and since it is free, I will gladly refund 125% of the purchase price to anyone dissatisfied.
Givin it 125 by oldlibmike