Ok, so I think this is something that Create Digital Music would normally cover, but I thought it was weird/interesting enough for us to bring up. So what we have here is something called Sense Surface, which basically allows you to place REAL knobs right on top of a virtual interface on an LCD screen. So essentially, this would allow you to place a real control knob on the virtual cutoff knob of that one Minimoog plug-in that you have that sounds amazing. Let's check out this video:
It actually seems pretty cool to be able to just throw a real physical knob anywhere you'd like on a screen. Although I think this would become a little bit sloppy when switching plug-in windows or switching to other apps in the background. It WOULD be excellent for alternative controllers like the Lemur, where you could completely remake your Minimoog front panel and then add real knobs on top of it. Just like a real Minimoog....
Check out more info from Gizmodo and Girton Labs
I would love to see this for the iPhone and iPod Touch too.