Rahul
I had the functionality of the buds in mind, working in a very similar fashion.
So you would have controls like play, pause, skip, back, fast forward, rewind, volume and all of these you could map to different actions. For example i could spin the dial one way for fast forward or volume up, and the other way for rewind or volume down. Play/pause could be on dial press, whether that be single, double, or triple press.
I like the idea of having that physical interaction, and it could open up some interesting third party functions.