I'm more looking for something along the lines of a wacom tablet where I can see what I'm drawing while listening to music and sitting in my bed.

However, I'm beginning to wonder if virtualization is over kill and and a native app that syncs wirelessly (like with a photoshop import plugin type situation.) with my computer would be better.

If the touch event registration can be set to a higher level of precision for shape and size, then you could use a pencil shaped stylus made out of a conductive material for drawing and angle the stylus to get different line sizes just like you would with a real pencil. Then you could use your finger to smudge the lines for various shading effects.

I'd also like a better text input solution. I'm thinking something a long the lines of a t9 style keypad that has been optimized for multitouch (e.g. rest one finger on the screen and type with another for additional characters). Or an abstracted handwriting system like they used to have on PDAs back in the day. (again optimized for multitouch)

I don't know. Maybe this will finally be the thing that finally motivates me enough to learn Objective C so I can just make it myself.