My thought about the iWatch is it will simply be a sensor package that has as an additional capability, the ability to accurately track time (synch via network connection for time correction).
The always-on, low energy wireless connection minimizes usage of the phone battery and lets people track their activity even when their iPhone isn't nearby.
Where it exists, the connection between drug trafficking and terrorism is a significant transnational threat that requires interagency and international collaboration in efforts to track and address the problem.