What I *really* would love to see is Rosegarden, MuSE, or seq24 working on the Zaurus. I am thinking though processing power wise you can't do that much, but at least seq24 (MIDI only) should be possible. Unfortunately QTopia doesn't support ALSA as far as I know.
CSound has been compiled for the Zaurus, at least.
I was thinking of building a simple phrase sampler for the Zaurus (e.g. tap on an icon and it plays an assigned wave file; maybe even record too). Probably a good easy project that I can learn Python on, once I finish up with my Windows MP3 stream ripping project.
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One thing the Zaurus lacks is a midi device. and arm devices lack a FPU, so audio manipulations are more difficult. Most audio and video apps out there use floating point.
I created audio recording software for the PDAudio cf card. The Zaurus could not even handle the vu meters. It barely handles 2/44100 sound. The Archos PMA400 has decent audio/video hardware, but lacks ALSA.