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Unless you are Jason Bourne or Sam Fisher I don't see an SMS watch being very neccesary since even the cheapest pre-pay cellphones offer SMS.
However...
If they want my money, include a wireless keyboard that I can keep in my pocket, about the size of a small calculator.
Come to think about it, PSP should have a wifi keyboard.
It's not just for SMS... it's a full-featured phone. I think it looks fantastic, and it's a good way to reduce the number of gadgets to carry in your pockets. I'm considering one, depending on the final price.