The SDK 3.0's Media Library Framework only allows you the most basic iPod controls over the music. You can't even output the .mp3 and work on it yourself (with OpenAL etc.).
So basically, its control can be only as capable as the iPod's, which is far too limited for any DJ applications.
Otherwise I would dream making the most amazing portable DJ device in the history of turntablism, ever. Hope we see that coming in SDK 3.1.