Earlier today, Apple announced GarageBand for the iPad (US$4.99). Available March 11, this app puts the power of audio recording and editing on the sleek, portable iPad. Features include touch instruments, guitar and amp effects (you can plug your guitar in for live recording), 8-track recording and mixing and more than 250 loops. Plus, you can email an AAC version of your song and even share projects with GarageBand for Mac.
You say you're not the most talented musician in the world? No worries. The app's "Smart Guitar" will keep you in tune by suggesting chords and even "strumming" the strings for you.
When I think of what I paid for a junky 4-track recorder in high school, one that was a glorified cassette deck, and compare it to this thing, I'm floored.