Open Peeps - A hand-drawn illustration library.
FontForge - Free (libre) font editor for Windows, Mac OS X and GNU+Linux
skribbl - Word guessing based on drawing.
Glyphs - Make everything from dingbat webfonts to full-fledged text typefaces in the most Mac-like font...
Fontself Maker for Photoshop - Turn any lettering into color & vector fonts
FontLab VI - font creation and editing, including variable fonts and color fonts