Focalprice has the Avatar ET-1 Unlocked GSM Cell Phone Watch for $66 with free shipping. Features quadband (850/900/1800/1900) connectivity, 1.4" TFT touch screen, full size sim card slot, Bluetooth, FM radio, and includes a 4GB TF card.
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Hmm.... It's 3/4" thick. It'll have to be sticking out beyond your cuff, which exposes the touch screen to abrasion. I guess the earphone's cable will run up your sleeve and out your collar. Man, you'll have to choreograph how you get dressed.
And what does it mean to support Ebooks on such a tiny screen?
#1 -- you should take note it supports bluetooth.
So instead of what you describe, you'd put a bluetooth tranceiver in your left (or right) shoe. It could connect wirelessly to the watch, and then you'd just need to run the headphone cable down your left (or right) pant leg.
"Can you hear me now?" Does it support faxing?