"Originally designed by J Silver, when I first saw the Drawdio at Maker Faire I knew it would be a great project for beginners: A lot of fun with instant gratification! Essentially, its a very simple musical synthesizer that uses the conductive properties of pencil graphite to create different sounds. The result is a simple toy that lets you draw musical instruments on any piece of paper."
Ladyada posts a great video presumably taken at Maker Faire showing Mr. Silver and a whole host of people playing with the invention - there is a great social aspect to the experience too as users can create more possibilities by holding hands whilst interacting with each other's doodles. It is worth noting that Jay Silver comes straight from that hotbed of maker talent, MIT's Media Lab, specifically the Life Long Kindergarten group.
I wonder if there is potential for a Drawdio/Photomake mashup? You could certainly have any sketches that you think are worth preserving converted into a lasercut outline without much effort..