Ocean Observations has released a concept video detailing how they believe iPhone Dashboard Widgets should work.

Basically the Dashboard would be activated using a three finger pinch. Widgets would be displayed over the currently open iPhone app and be spread across multiple pages. You can add, remove, drag, and adjust widgets to your personal preferences.

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The triple pinch gesture can be invoked from anywhere on the iPhone. We feel this gesture is unique enough to be used as a systemwide shortcut. Although, since the gesture requires a two-handed action, we thought it would be convenient to be able to set it as a home button shortcut as well. This would be changed in the Setting - General - Home.

Dashboard could even be activated on the lock screen using the same gesture. However, if you have a password protected phone, this feature would be disabled to prevent unauthorized access.

Widgets should be connected to their app counter part. So a widget such as stickies should be connected to the Notes app. If you make sticky note, it would be visible in the Notes app as well.

In the case of the a widget where you need to enter text, the keyboard would slide up and the widget would be positioned above it.

The default setup of widgets could be the following: Calculator, Calendar, Clock, Converter, iTunes, Stickies, Stocks, Timer, Weather and Web Clip. In addition to that you would be able to download third party widgets from the App Store.

The Quick Settings widget in the movie is an example of a third party widget. It would allow you to quickly toggle settings that might drain your battery.
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