According to CNET.com, "To kick off the 2011 iPod Nano revealed at yesterday's (Tuesday's) launch event, Apple is offering 16 new faces for a total of 18 choices for watch wearers. The lineup of new faces varies from Kermit the Frog to Mickey Mouse to traditional analog to more modern digital styles. The new watch faces are included with the new iPod Nanos so owners can change from one to another depending on their mood."
In order to make the iPod a watch, one must buy a band. Vendors like Hex, iWatchZ and Lunatik sells bands designed for the iPod Nano. Prices range from $25-$90.
The new iPod Nano is also cheaper than last year's model. The 8GB version is $129 and the 16GB model is $149.