Yes, you could create songs with many of the bundled instruments and also capture directly from musical instruments with midi output. The songs where recorded on the VMU, I tested it a few years ago and recorded a small test.
Obscure Gamers is a Video Game Preservation group founded in 2017. We actively work to preserve long lost video game history & hardware for educational research and historical purposes. Our long term goal is to work with Video Game Developers in preserving this important history from being lost.