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Has this been mentioned yet? BeatMaker2 for the iPhone amongst many other things, it has a pretty cool MPC styled drum/sample manipulation portion of the program which allows you to create and break down a live loop into individual sounds (think separating all the sounds in a breakbeat) for remanipulation. No Midi out, but this is a pretty hip tiny drum machine that also has loop manipulation and synths added. http://createdigitalmusic.com/2011/02/the-handheld-studio-evolves-beatmaker-2-developers-explain-their-iphone-workflow/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+createdigitalmusic+(createdigitalmusic.com)