iPhone Nano?

All the talk at the moment seems to be around more powerful tablets, larger phones, and fancy watches as phone accessories. This seems to be mostly driven by a spec race between manufacturers without real focus on the core experience; to me it it would actually build an incredible amount of duplication in the way I use my tech. I started wondering if there could be another way.

Then it struck me- what if instead of blurring the lines between phones, tablets, and wearables you could make some real distinctions. What if Apple could catch the market off guard by doing what they do best - redefining product categories by utilising existing technology to offer a better customer experience, not just better specs.

As someone who's recently started using an iPad Air as my main personal computing device, I've been amazed at how portable and usable this is. I now carry it with me most places and as a result my iPhone 5 is being used less and less. I realised all I actually need from my phone is access to mobile network for data, basic voice activated communication, music playing, and perhaps navigation. To me the ideal phone would actually be as small as possible, with basic stand alone functionality, and a strong interface with my iPad. Something like the clip on iPod nano from a few years ago with 4G, iPad tethering, and some software tweaks would be perfect! I'd probably prefer for this not to be a watch (not my style), but it could be designed with watch accessories in mind.

To me it's the setup that makes the most sense, but is perhaps too bold a move for companies to pursue. What do you think? What would Jobs do?