We're having a discussion here, right? I think we both agree that the iWatch is at least, a tad disappointing, at least at this point in time.. I think we both expected a bit more out of Apple's next big thing. The fact that it is almost like all the others is a little...underwhelming? Tim Cook's announcement of the device itself was even a little odd. Coming out with your hands raised, it was strange, that's all. The iPhone sold itself. No hype needed. All Steve Jobs did was explain the features of the device.
In regards to your last point, I guess what your saying is that Android lovers consider the iPhone overrated..? I think that is what your implying. That really has nothing to do with how revolutionary the iPhone was when it was announced. And I think most "objective" observers would agree that the iPhone is "at least" as good as any other smart phone on the market, and they were the first to get there. But again, your comparing the two again. The watch with the iPhone. I'm saying they are not comparable, and you aren't giving me any reasons why I'm wrong.
I think I'm seeing your problem. You think the Apple watch will only sell if it is "revolutionary". Apple hasn't had a revolutionary product since the iPhone. And before that, their last revolutionary product was the Lisa, more than a quarter century earlier. You could even argue that neither the iPhone nor the Lisa was truly revolutionary, since they took already existing elements and combined them into a different package.
Revolutions don't come along every day. With the Apple Watch, they have combined elements from fitness bands, wristwatches, the iPhone, secure NFC payment systems, and fashion, and combined them into a new product that will appeal to many people who already own iPhones (which is a sizable market). And what makes it different from the competition is that it's designed to fit seamlessly into the Apple iOS ecosystem. And that ecosystem is expanding to include home automation, finance, and health and fitness.
This is an evolutionary move by Apple. Ten percent of people in the survey said they were very likely to buy a smart watch in 2015, and if that percentage holds true for iPhone users, the smart watch that makes most sense for them will be the one that works best with their existing iPhone.
Going back to the original iPhone, it's easy to forget about what was missing. The camera was not good. You could get the real internet, but not if the website used Adobe Flash. Unless you were on wifi, you were limited to Edge speeds. There were no third-party apps, just the basic ones that came on the phone, like Weather, and Stocks. There weren't even any games. It didn't have GPS, or a compass, and the Maps app didn't have turn-by-turn directions. There was no cut and past functionality. Some other phones did have these features, and it's understandable why owners of those phones were hesitant to call the iPhone a "smartphone".
Future Apple watches will probably have features that make the first generation seem crippled. Or perhaps you are right, and the first gen Apple watch won't sell enough, and Apple will completely scrap the line. I'm sure there are some who would have felt vindicated if Apple had decided it wasn't worth it to make a second-generation iPhone.