Right...let's say you have three separate LFOs, plus...oh, a Nonlinearcircuits Sloth and an adder. So...LFO 1 and the Sloth go into an adder so that the LFO's output is constantly subject to slow alterations. Adder feeds LFO 2's rate CV, then that LFO feeds into LFO 3's rate CV. There is pretty much NO WAY that LFO 3 can output anything steady and/or repeating with that sort of a control chain feeding it. Now, go nuts and feed that LFO into a quantizer that's set for something like a minor hexachord with A1 as the root. Then clock that quantizer with...ah, let's get stupid with a comparator that pulls its gates off of a triangle wave from LFO 2. So, each time that fires, it locks in a new voltage on the quantizer. Feed said quantizer into a shift register, clock that critter with another comparator from a triangle from LFO 1. Now, feed those shift register outs to different VCOs set with very different waveforms, mix this down, feed to a VCF of considerable weirdness with an ADSR gated from YET ANOTHER quantizer, this time off of LFO 3's ramp. Then...
...well, you get the point. It's possible to do some extremely crazy stuff of a generative nature like this, or even with simpler patching. And yes, a S&H can work as a quantizer's front end; the important aspect of a quantizer is that, once the incoming signal is sampled and locked-in (either via detecting CV changes or via a clock), its output CV derived from the sampled source is then constrained to a specified scalar tuning. So the S&H is a quantizer part...but not the whole thing.
There's a number of Arduino-based modules here on MG, also...looking around carefully should uncover them. If you're feeling secure in your coding, some even have ways of having their firmware rewritten by the adventuresome. Dangerous...but potentially fun!