This is the kind of stuff Windows 7 multitouch is perfect for.
http://www.openlabs.com/DBeat.htmlI can't see using touch on a regular vertical monitor anywaw. It's much better suited for tablets, portable devices and stuff like this where you're using it like you would a musical instrument.
They seem to be saying that they will support it once Win7 is released. I'm sure they've been testing out the betas already anyway.