Smule, a premiere developer of interactive sonic applications for the iPhone, released an enhanced version of the acclaimed Ocarina, on March 23rd, 2009. With Ocarina 1.3 you can now play it using touch or wind. This feature enables the product to have compatibility with 2nd generation iPod touch devices.
Users of the iPhone will have access to both modes — wind via blowing against your microphone, or touch. In touch mode, you only need to hold down holes to create sounds and music.
See it in action here: http://www.youtube.com/watch?v=RI7M8h9zgMw