Paying ~700 (or even up to 3000) for a special, hand made watch? Sure, I'd to that.
Thing is: it has to work after 10 years like it did on day 1. With modern electronics this is not going to happen.
Factor 2 off? I'd say now it's factor 10 overpriced. Those prices could if you could exchange your watch for the newest version every 2 years for 10 years or something like that
Actually, I'm guessing that the internals of the Edition Watch will be swappable down the road. Considering the internals probably cost less than a $100 that might be a cheap way to justify the value. And if designed to be fairly easy to repair (which I know is very un-Apple), then the labor cost for a swap and repair would be cheap as well. Since Luxury Watches regularly get serviced, Apple might take a cue from that.