I love finding handy new applications for the iPad. iFontmaker is the first, and as far as I know, only native font editor for the iPad. Using the touch interface, you can create 100% original hand crafted fonts using your finger tips or your trusted stylus.
You can email the typography or convert it into a TTF (TrueType Font) file available for use in all your applications like Adobe® CreativeSuite™, Microsoft® Office™, Pages, Text Editor etc. The fonts you create work on both Mac and Windows platforms, and can also be embedded in your web site as a web font.
The app costs $7.99 on the app store.