The nano is only viable as a watch because of its subtle analog clock app. Unfortunately you can only choose between black and white faces. Apple needs to offer more clock skins and open it up to submissions from users.
The strap is made from high-quality silicone and if you've never seen it made, you should. Check out the LunaTik manufacturing video, (http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-watch-kits/posts/44218) the band part starts at about the 04:40 mark.
Most earbuds (like Apple's) will fit fine inside the LunaTik's opening. I used it with a pair of ER4's from Etymotic Research. The connector just fits but its black cable and right-angle connector look extra slick.
Here you see the headphone and dock connector ports, and yes, I broke the head off the top hex screw. Everything still held together tight and I'm told that the problem has been addressed in the screws that come with the production watches.
This is my music screen, but it's relegated to my fourth home screen. On my first are: Podcasts, Audiobooks, Playlists and Now Playing. Thanks for clicking through my gallery, please post a comment under the story with your thoughts on the LunaTik or just the concept of an iPod as a watch in general.