They should make a Cowon watch dap.
Now that would be interesting indeed! However I think it might not be the most comfortable method if the 3.5 mm socket was directly at your wrist (I've got a cheap AGPTek watch DAP and it feels weird connecting the headphone jack to your wrist).
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I agree, PM2 is a fantastic sounding DAP, I also have PD and I'm going to keep them both for a long time. The only downside of PM2 is its battery life, mine lasts up to 8h