I wear a watch. I've worn the same watch since I was a kid. It's a Casio W-59. In fact, I've never worn any other sort of watch, except other Casios that look identical but that have different backlights (and they do a model that does the MSF radio-clock time-setting, I believe). Every single example of that watch I've worn has lasted 3-4 years and then the strap breaks and I buy another. I have a drawer full of the mechanisms with no straps on them that are STILL WORKING 10+ years later with no battery change (and changing the battery probably costs as much as a replacement even if it does ever happen). It shows me hour, minute, second, day-of-week, and date-of-month at a glance and has a little light so I can see it in the dark. When I was younger, I could read books in bed in complete darkness by the tiny light it gave out. I can set an alarm if I've nothing else on me capable of doing so. It's waterproof and pretty damn solid (even the strap, which takes YEARS to give out) so I've never managed to do any damage to or lose one from my arm even when swimming and forgetting it's there.
And how much do I use it? Barely ever. In fact, I put it on every day and probably spend more time over my life putting it on and taking it off than I ever do looking at it, but I miss the weight of it if it's not there.
Actually, I probably spend longer adjusting my watch once-every-six-months or so to make sure it's on "my time" than I do looking at it. Why do I carry it? Sheer habit. When I was younger I used it all the time for school. When I go to job interviews, I like to have it there to make sure I'm on time. Every other time, I don't use it and have actually pulled out a smartphone before I've realised that I'm wearing it (and, bear in mind, I've worn one every day for the past 15-20 years). I have a bad memory and so have a morning routine which involves the watch and, also, a pat-and-count of my body to make sure I have taken everything (without which, I would end up driving miles to the shops and not have my wallet on me when I get there, quite easily).
Watches are inconvenient. If you wear long-sleeves, you have to pull them up to look at the screen. You have to sacrifice the usefulness of both hands to check the time, in that case. You have to put them on and take them off and be used to them being there (I have caught mine several times on things when working around the house and given how long I've worn them, that's quite telling).
I work in front of a machine that displays the time, in an office with a clock, on an office phone that shows the time, with timed bells (I work in a school). At home, I have a machine that displays the time, a clock that displays the time, a TV that displays the time and various ways of discovering the time otherwise (including a drawer full of watch-faces!). In the car I have a radio that displays the time and a clock that displays the time. Walking around I have a watch that displays the time and a phone that displays the time (even when locked). I don't go anywhere without both.
It doesn't mean I'm never late, or that I always know what the time is, but the time is everywhere. So my watch could easily do more and I would be right alongside that idea because I carry my watch and extraneous gubbins around with me all the time out of habit. But a watch that "does something" has been around since I was a kid - everything from calculators to measuring tapes to hidden pens to radios to TVs to - now - "smartwatches". I don't believe that people use them practically because they aren't in a convenient position for a) looking at anything without sacrificing at least one arm's position while you do it, b) hearing anything it does without it disturbing others, c) it hearing you speak, d) the size of the interface available on the watch, e) pressing buttons (which you have to do with your other hand rather than the "same-thumb" technique for holding a smartphone), f) being unable to comfortably use it once you've removed it (so that limits its ability and value if, like me, you take your watch off when your indoors).
The watch is just not a convenient interface for anything, even hands-free. Nor are bluetooth headsets, I'd like to point out, but a watch even less so (not even close enough for audio in a noisy environment, for instance). Of all the space-age tech we saw in sci-fi and Bond movies over the last 5 decades, the gadget-watch has been around the longest and enjoyed the least success. I'm not surprised watch companies won't touch gadgets with a bargepole.
Hell, I even laugh at the star-trek badge that has to be tapped to talk. I find that hilarious, given how much of a pain that must be to keep pressing (and I bet it wears a nice little hole in your nipple after a few years of busy pressing), and that's halfway between a headset and a watch for communication purposes.
Honestly, watches are fashion items and items of habit. Nobody's needed one since mobile phones, same as address books, calendars, and calculators. Making it "smart" won't make it an overnight shock success (though, obviously, you'll always sell SOME of them). In fact, all it will do is make smartwatches things we can all laugh at.