Its not about cool. People weren't cool for having smartphones or PDAs 10 years ago, because the functionality that they offered was something only a very small segment of people wanted.
With the rise of iOS and Android smartphones, they provided functionality that a lot of people wanted.
Right now the watches (and glasses) are like the smartphones or PDAs of 10 years ago, and do something only a small segment of the population wants (i.e. fitness) They'll need to add some additional functionality that a lot of people want to become successful. If no one solves that problem, they won't sell many, because a useless product isn't "cool" no matter who sells it, but a useful product isn't selling well because its cool, but because it is useful.
Having a watch notify you of a text message or call is useless, because the only way to continue the interaction is via voice. Unless you get a lot of calls and texts you ignore having the notification isn't the end of the matter. If you have to grab your phone anyway you haven't saved any time (not that taking your phone from your pocket is difficult, but presumably the idiots who design the current crop of smartwatches think so since that seems to be the only function they provide)
Do you really want to hold your watch to your mouth and speak texts in front of others, or alternate holding it by your ear and your mouth to have a phone conversation? Few people will, that's why what Sony is describing here will fail like all other smartwatches have (with the exception of the ones that fill that narrow market for fitness buffs, which are successes in a narrow market but aren't going to sell tons like smartphones in places full of fat lazy people like the US)