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In the heart-rending, brother-against-brother conflict that is Ocarina Wars, things just got more interesting. Because, while the Ocarina app from Smule lists itself as being incompatible with the iPod touch (since it uses the iPhone’s integrated mic), we’ve received confirmation that it works just fine and dandy with external mics for the touch, including the new Apple mic/remote headphones.

Smule’s CEO and co-founder Jeff Smith writes:

The product works on the touch—in fact one of the people in the stairway video has an external mic in their mouth and is using the touch.

We’ve gone around this issue seventeen times at Smule (I do not exaggerate) because we’re not big fans of AT&T and moreover want to empower those millions of people on touches to experience Ocarina. Yet, in the end, our product designers were very passionate about the fact that we haven’t put an instrument on the iPhone, we have made the iPhone into an instrument. And so an integrated mic is fundamental to the experience of creating music. I guess in the end I respect a team that puts aesthetics and experience above revenue (but it wasn’t easy!).

For those of you who missed it the first time, here’s the video Jeff’s talking about: