Seen here: a 16GB graphite iPod Nano with a Hex Vision stainless-steel watchband ($69), gunmetal color. The watch face is one of the new varieties available in the 2011 iPod Nano software update. With this band and at this angle, it's hard to tell this isn't just a funky watch.
I unearthed my 2004 Fossil Wrist PDA, tucked away in a gadget drawer, to compare with the Nano watch of 2011. The Fossil watch has 4MB of memory and uses a stylus tucked in the buckle to control the Palm OS touch screen; the Nano has finger-based multitouch and no PDA functions, but 8GB to 16GB of memory. They're spiritual cousins.
A large, exposed 30-pin port connects with a standard, included Apple cable to charge. The headphone jack sits adjacent. That's a lot of exposed ports on one side. I'd be worried about accidental water damage while washing my hands, but thankfully this side is hidden under my shirt sleeve when I'm wearing the Nano as a watch.
If you want to listen to your music, you must use wired headphones--there's no Bluetooth. That helps battery life, but it can cause tangles. The headphone wire also acts as the FM radio's antenna. When headphones with a mic are connected, you can also record voice memos.