This is something from the 1970s and earlier. It uses a vacuum fluorescent display which you may remember from the hand held video games of the late 70s and early 80s (if you are a certain age):
http://en.wikipedia.org/wiki/Vacuum_fluorescent_display
The only problem is that VFDs use a lot of voltage - 9 to 15 volts. I'm not an electrical engineer but I have never seen one used in a watch or other small portable device, so I'm guessing that the power consumption and voltage are prohibitive (although given a large enough watch it would work as in the nixie watch). Perhaps someone here with a background in rustling electrons can give a better answer.
Neat clock display, though. There certainly could be watches with such neat and colorful displays although they would probably have to use OLEDs or backlit LCDs. They haven't materialized, not for technical reasons but since nobody thinks there is a market.
-abe.