Back in March I commented on an untapped area of the body that seems ripe for development by technology companies. The Wrist.
My opinion hasn't changed, and now there's a wrist-based phone. I don't agree that it looks ugly, but then I'm a watch fanatic and my normal wrist attire is the Suunto X9i or the X6HR.
A combined watch, PDA and phone would certainly mean fewer things to carry, and you'd be much less likely to forget any of them.