Incorporate DOS Balloons ideas...
When I was raising my first 2 children (16 and 14) years ago, I used a DOS program which displayed different colored balloons based on the keys pressed (i.e. G=Green, P=Purple, etc.). Non-mapped keys generated random colored balloons. There were several cool features that I would like to see in BabySmash (which my third child - 15mos - is now using). (1) Add an all-balloons feature. Kids love them!, (2) for variety, add the balloons/letters/numbers/shapes/images in random sizes when the key is pressed (the DOS program used 3 random sizes, I believe) , (3) fire the new images/sounds on keydown not keyup (much, much more satisfying/gratifying), and (4) allow the up/down arrows (and scrollwheel) to increase/decrease the size of the last image. When the image/balloon expands to barely touch one of the screen borders, it pops with confetti or fireworks and The ABC Song (or Twinkle, Twinkle Little Star - same tune) was played. The same popping occurred if the balloon was shrunk down to a dot. The kids would take great delight in expanding/shrinking and popping the balloons. The same thing could be applied to your letters/numbers/shapes/images.
Great ideas, all!