I think the video speaks for itself.
Quoting the official description:
Evernote Peek is the first app designed for the iPad 2 Smart Cover! Studying with an iPad has never been more natural. Simply peek under the cover to prepare for a quiz, practice a language or strengthen your memory.
I think that using flashcards is a great study technique for various mnemonic topics in Medicine. I have made tons of them myself for Physics, Biochemistry, Neurology. The problem is that this huge pile of cards is stocked in a box. Going digital is a great opportunity to have them searchable and more quickly written and edited in the future. There are many free / cheap / expensive programs that help with with task. But I believe Evernote Peek (free for iPad 2) has made a step further. It might not suit your needs, but it's definitely work a try.