You can use it as a voice recorder, with the ringtone converter app... It has a record funtion

granted it's not high end, but if you are talking that then the iPhone dose not really have the space (even at 16gigs) for a full out multi track recorder... Example:
I just converted a 3.5 second MP3 file to 192000Hz x 32bit its size is 5.3mb.. To compair:
the same file in MP3 is only 6.01kb.. So yea, you could record two or maybe three average length songs, but not whole album.. At least not in a format you can save as a multi-track.....