I'm pretty sure some other company already makes mp3 players to a similar design... or at least memory sticks. They can be popped open into a long flat configuration, revealing a USB plug (and being far easier to plug in/handle/store/charge off your wrist and get on/off in the first place). What this guy has basically done is Apple-ify it (make it shiny, reduce the functionality, slap a logo and cute name on, and remove all suggestion of universal-standard data/power connectivity) and claim it as a new idea.
I mean, it's pretty neat, and I could see e.g. my mother wanting one for gym/garden purposes (and my buying it for her) much as we ultimately did a Sansa Clip... but a real one would probably end up failing in the same way as the immediately previous-gen shuffle (not dockable, controls stuck on earphone cable, crappy capacity, no screen, etc) which was the alternate choice. And I bet they wouldn't bother adding a watch-style motion-driven charger. Yet probably a pedometer, even though they work on the same principle.