As MIDI on the iPad gets more popular, I expect to see a MIDI interface that simply plugs straight in...

But, unless it can be linked to Mark/Jump and transpose, Minus One things, stuff like that, it seems that MP3's are the better option (get REAL guitar on your tracks instead of fake ones!).

Can the linked MP3 player do transpose, yet?
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An arranger is just a tool. What matters is what you build with it..!