It's going to ruin cheating. With my Pebble, no one knows what it is other than an ugly watch, so no one tells me to take it off. With Apple, of course everyone will know what it is and what it does and the instructions will tell everyone to take off their smartwatch when they enter an exam.
That's probably the first practical use of the paired doodle thing they demoed that I've seen. I wonder if that works independently of the phone, or if it's done via phone bluetooth.