In this case the revelations aren't that exciting, so they probably have a higher level of reliability than most predictions with similar attributions.
Apple prototypes, separate the parts of the phone with which you view information from the parts that compute it, according to "people familiar with work in the lab," (who are similar to those who have knowledge of the company's plans, but come later in the tour of the building being led by one PR person and a product manager, both of whom swore you to secrecy before admitting to their own existence).
The conceptual products might display information from the screen of an iPod Nano worn as a watch; the guts of an iPhone are stuck in your pocket somewhere.
Another possibility is to make the iPhone screen curved so you can wear it like a wide bangle bracelet.
Both predictions focus on the form factor of the hardware involved, which is the myopic view.
Wearable computers a la Apple may be sleeker than the boxy prototypes from the MIT Media Lab, but they're still just the hardware.
In mobile computing, the real impact is what you do with the computer, and from where you do it.
Computer displays in eyeglasses, contact lenses and other highly portable form factors, and ubiquitous connections to location data, games, images, news, entertainment, music and anything else on the net, will blur the line between the virtual world and the real one, according to Michael Liebhold, a senior researcher at the Institute for the Future quoted in the NYT piece.
“Kids will play virtual games with their friends, where they meet in a park and run around chasing virtual creatures for points,” the NYT quoted Liebhold as saying.
I have no doubt it's coming. I have no doubt Apple is working on something it can sell for an unreasonably high price that will help make it common.