This baby is running on a Freescale i.MX233 CPU with 4GB Flash storage, speaker, microphone, Bluetooth, but no Wifi. It has a 1.5" screen with a resolution of 240x240, and it's supposed to support regular Android apps as well as act as a Bluetooth peripheral for your smartphone.
Yep, you can use this replace your Bluetooth headset, if you don't kind holding your watch up to your ear to carry on a conversation. You obviously won't be able to use the speakerphone most places; that would be rude.
Standby time (with Bluetooth turned on) is estimated at 30 hours, so as great as this thing is, it's still going to need to be charged almost everyday. I'm not sure it can succeed as a watch with that limitation.
On the other hand, who cares? i want to be able to say, "Excuse me, I have to go answer my watch." I'd also like to set up automatic emails for low power warning: "Please help. This is Nate's watch and he's trying to kill me."
via product page