Not very long ago, during the heydays of dotcom boom, people talked about everything from toasters to refrigerators being connected to the Internet. Ofcourse, in absence of real, value driven use cases, most such talks died along with the dot com bust.
But may be, there are valid use cases for ubiquitous internet connectivity. For example, I would love to have wrist-watch that not only tells time at any place but also lets me "see" the satellite view of the place, as demonstrated by this Google Desktop Gadget.
Though I have a feeling that we might see this kind of capability in a Google enabled video iPod as a feature much sooner than in a wrist-watch.