The full iPod music library on the phone should be exposed via official APIs now. But I don't know if that includes indexed DB or not. It might be that an app would have to implement its own DB after a scan of the music on the iPod. But maybe not.
Surely all playlist management and other tasks would have to be handled specifically by the new app. The API would really only be to access the music and run playback - why bother implementing your own MP3 decoder when there's already one there.
Incidentally, the AMP player is the *only* alternative player I've ever found in the app store. Anything else player related has been some proprietary streaming or internet radio stuff. I'm not that crazy about the AMP UI (from the screen shots) but I have been meaning to try it out.
Edited by hybrid8 (24/08/2010 18:17)