It's just a patent app (so the phone may never see the light of day), but this Sony Ericsson Bracelet Phone should be put into production, if only for the novelty factor.
Labeled with the understated moniker "Mobile Terminal," the phone is really a piece of morphing apparel. On your arm, you can use your phone like a watch. Pull it off, and the display twists, allowing you to hold the phone like a steering wheel. Through this simple transformation, you're never pigeonholed as a Dick Tracy wannabe. You can imitate the finest of NASCAR drivers, too.
It's the type of design that, while mechanically cute, feels dated in an era of lean, minimal devices that slip in your pocket and provide far more screen real estate (or even just recent concepts). But paint the thing pink, add some sort of Hello Kitty Tamagotchi and the kids will love it. [Patent via unwired view]