I came across this App, Paper 53 on a couple of blogs this week and I decided to buy it for myself for Christmas yesterday. I tried the free app first but you're limited as you can only write or draw in black. However, it did give me a fell for how it would work. I like the gestural qualities you can get with it, especially when using a finger as opposed to stylus.
There are a couple of erasure marks in this but you get the idea. Maybe they'll be some fabric designs that come from it.
Sometimes on paper ! can get all tight and detailed with a pencil. It's quite freeing to use the finger tip and you can erase it if you don't like it. I'm having fun with it! I think I saw a mini I pad advertised. Wouldn't that be fun to carry around!