Fail
Personally I think if all Apple tries to simply shrink the iOS experience on their iWatch, it will fail. I doubt they will offer anything near what we have already seen on iPhone or iPad, or the iPod Nano.
People seem to think that a Smart Watch is just a small tablet, this is flawed in so many ways. The same kinds of interfaces that thrive on larger screens cannot be the default interface on a small screen, especially if it is not square or rectangular.
Google has the right approach with Android Wear, the watch is aware of the context of what you are doing and so shows the most relevant information for that context. A few sweeps up or down or side to side exposes more information, but most importantly Android Wear is not just a grid of icons to other apps you have to manually launch but something that is always relevant to what you are doing. If Apple were smart, you will never have to launch an app on your watch.
Also make a Smart watch screen too big, and its just going to look cheap and juvenile. Watches are about design, otherwise we would all wear Casio calculator watches. Throwing something 1/4 the size of a phone on your wrist will also make the genre fail.
Hopefully Apple is not as naive as this fanboi designer, but then again...