How I think the iWatch will be.
What I believe Apple will introduce is something similar to the iPod Nano. It will include the Watch-faces (of course), calendar, photos, nike+(maybe a more advanced health app). However, It won't include a music player directly from the watch since it's a iWatch not an iPod. What I believe the "innovation" of this product will be is the ability to somehow (maybe bluetooth) synchronize the iWatch from your iPhone, giving it the ability to receive texts, phone calls, twitter notifications etc... This would also give the iWatch the ability to control your phone's music from your hand as well as send information for web-based apps such as Weather, stocks, etc...
For the price range, I'm aiming between an iPod nano and iPod touch so around $200-$250. Then maybe some $30 dollar wrist-straps made out from similar material of the SmartCovers with similar colors as well.
To get more of an idea, I made this iWatch software concept that's been going around websites. I'm not saying this is how it will look, but I'm hoping they release something similar. Tell me what you think!