At Fast Company, Sarah Nagle has some advice on creating products for the Lady Gaga Generation. [Now there's a chilling term.] An excerpt:
...The best designs for Gen Y encourage change and offer flexibility but also offer the ability to slow down and enjoy life’s meaningful moments. In this context, it’s no surprise that the iPhone with its many possibilities within controlled boundaries is such a favorite for Gen Y. It has an OS that allows for infinite customization but it also offers apps such as Face Time, Hipstamatic, and Words With Friends that offer nostalgia and encourage conversations.