This isn't the first ones MS has heped out with. The Timex Datalink Watches used a horribly written MS Visual Basic program to sync info to them. Outlook also has hooks into it for those watches.

I owned one of the second gen ones for a long time. Was actually pretty cool with some 3rd party apps, but over time my cell phone replaced it's functionality. Eventually I let the watch fall off my wrist during a white water rafting trip on the Colorado river, and haven't ever bothered to put something else back on my wrist to replace it.