Autodesk just created Sketchbook for the iPhone which is friggin' super cool.
It amounts to a very very fancy way for modern-age fingerpainting, and since my art skills are similar to that of a 5 year old, this is obviously a lot of fun and results in some silly drawings. Here are a couple of "drawings" so far, haha. I gotta figure out how the heck people make really fancy high-quality drawings with this, I think my fingers might be too fat. ;)
Angry dude with rabbit ears and a cyrano de bergerac moustache