Two examples of iWatch app pairings.
Siri: Siri becomes the primary input method on a device this small. Click and hold the face (similar to clicking and holding the home button on current iOS devices) to launch.
Facetime: Video calling could get potentially really cool when its tethered to your wrist. In this concept, the watch has its own camera. Hold your wrist out with the camera pointing towards your face to talk. Hit the 'wrist switch' function on the left, then rotate your wrist out and away from your body to show your audience what is going on in front of you.
Full concept can be viewed here: http://dribbble.com/shots/1197052-My-iWatch-Concept-Overview
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