I did a few tests with fireworks. To create a firework, first create a firework star. This is gunpowder, 1 or more dyes, and certain ingredients with special properties. Glowstone makes the rocket sparkle, diamond leaves a trail behind the colored particles, and both can be used with any other ingredient. There are shape modifiers too (note that only one works per star): gold nuggets create star shapes, fire charges create large spheres, and heads (of any kind) create creeper face shapes.
By placing paper, one to three gunpowder (more gunpowder means the rocket flies up higher and farther off to the side), and one or more fireworks stars, one creates a firework. Each star acts in rapid succession, starting with the top left, going across and then down, according to the way the stars were placed in the crafting window. Each of these stars can be of different color, shape, and properties, to make some interesting displays (each rocket, for example, can contain 56 colors, although some would be repeats). Fireworks can be shot out of dispensers as well as by placing them on the ground. There may be even more information I haven't discovered yet, such as other ingrediants.
Me and my friend were goofing around and found out how to make a working fire work!!!!! First you put gunpowder with up to 8 dyes in a crafting bench, then if you want put 8 MORE dyes around the star to get a fade to effect then, place your star, paper and gunpowder to get a rocket!!!!!!!!!!!!!!!!
The ability of books to enchant anything, especially stacks, in survival mode is probably unintentional. I hope. I wonder if they will re-balance them for weapons/tools, though -- check out how little it costs to combine two sharpness 4 books into a sharpness, 5, then consider that you don't have to waste a pick to combine them.