Looming iPod Nano Watch accessory?

Just finished reading Nilay's iPod nano write-up and a thought came to mind.

What if they have changed the design from the prior smart-watch size to open up the category for a future product?

Thinking specifically of the Pebble e-ink watch and the breadth of possibilities for a smart-watch.

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Elecom-ipod-nano-strap_medium

Future Gimmick or the kick-start (if you pardon the pun) to another industry?