Update: Okay, we've gotten much more quality time with the nano, and we'll admit that after some brief practice, the menu navigation is nice both going in and out of menus -- holding the middle will take some getting used to, if only because you gotta avoid any other on-screen items that beckon for your digits. Probably due to the small size of the screen, there is no pinch-to-zoom for photos. Instead, we're using a simple double-tap motion to a fixed zoom in / zoom out distance.
The clock app has a very easy-to-read analog style to it, and swiping across the screen will give you a stopwatch and timer. There is no alarm clock, however, which as the Apple rep explained to us was a design decision given its lack of an external speaker. Bummer, as it's the perfect size to strap on a band and use as a wristwatch -- a fitting thought, too, given one of the settings will let us see the time every time we wake up the screen. Check out our video tour after the break.