I think it plays music as well...but I think the killer feature would be in the integrated map/gps. I can imagine using the iWatch while driving and glancing at the screen on my wrist which shows the turn by turn directions. I think that would be a tremendous feature.
But would Apple really work with Intel on something like this anyway? Building a smartwatch with an Intel chip would require Apple to provide x86-compatible software to run it. It’s been rumored for quite some time that Apple wants to bring iOS to the Mac lineup, and that would necessitate a port, too. If those aspirations are real, then it’s possible that Apple already has an x86-friendly version of iOS that would run on an Intel mobile processor (presumably Haswell) or would have one ready in time to launch a smartwatch next year. That’s never been officially confirmed, however. The other option would be custom x86 software that provides functionality similar to what the Pebble will offer users when it finally hits the market.
It should be assumed that iOS has is running on all Apple devices the same way the reverse should be assumed. This is a very strange rumor. The watchi is smaller and lighter than any of the other Apple devices. If they put Intel Inside this device then it would be Apple validation that Intel has a part with low enough power.