Ran a series of tests this evening trying out some of the various different theories and combinations which had been discussed in this tread. For these tests I ran the same know one mile loop in my neighborhood 5 times trying out different combinations each time.
For these tests I used an
iPhone 6 with software version 8.3
Stainless Steel

Watch with software version 1.0.1
Headphones both regular wired and bluetooth
The known 1 mile route as mapped from my computer.
#1
Nike Running App on iPhone

Watch Workout - Outdoor Run w/ no goal
iPhone wifi and bluetooth both ON.
Bluetooth headphones connected to iPhone
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#2
Nike Running App on iPhone

Watch Workout - Outdoor Run w/ no goal
iPhone wifi and bluetooth both OFF.
Regular wired headphones connected to iPhone
#3
NO iPhone - powered off and not carried

Watch Workout - Outdoor Run w/ distance goal of 1.0 miles.
Bluetooth headphones connected to Watch
#4
NO iPhone - powered off and not carried

Watch Workout - Outdoor Run w/ no goal
Bluetooth headphones connected to Watch
#5
Nike Running App on iPhone

Watch Workout - Outdoor Run w/ no goal
iPhone wifi ON
iPhone bluetooth OFF
Regular wired headphones connected to iPhone