Re: Rather Expensive
I'm utterly unconvinced. But the biggest problem I see is that the Apple watch will only appeal to people who like Apple design. It's basically a minimalist version of the Cartier Tank Watch, and the variants of this (along with the Russian rip-offs), while they include some very nice designs, haven't taken over the world. Do I really want an unusably small screen peripheral with a case that is a copy of something else? Obviously quite a lot of Americans, and would-be Americans, will say yes, but I think your last paragraph is spot on.
And to watch snobs, the Apple watch will just say "I know nothing about watches".