I call BS.
Nobody wants wearable electronics. They seem useful in most people's imagination, but in reality they're not extremely practical (especially since you need your phone with you anyway).
Yes, you're right. That's absolutely not an iPod Nano i've got strapped to my wrist every day and that i'm looking at now.
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meh.
The nano didnt catch on as a watch for a very good reason.
No, as a watch it's merely a watch. But it's great for listening to music and podcasts on, meaning each year i only need to cheaper 16gb iPhone instead of the larger size ones to fit on all my audio and apps.
as for not catching on, i've got one and use it as a watch and an iPod. And three other people in my office got themselves one shortly after and use it as their watch.
So I think what you meant to say was "The nano didnt catch on as a watch within my small circle of friends, family and acquaintances, but I've no idea how it did in the rest of the world."