Apple is crossing over into the world of fashion with this product, so they are certainly hoping to appeal to people to whom being seen to have conspicuously spent more is a feature. You and I don't have to get it, just know it's out there.
Apple selling a gold watch doesn't bother me as much as their artificial differentiation to upsell you into a more expensive product. And they're currently doing that with products that are supposedly "for everyone". Some people will buy the gold watch because they prefer the look of it and they can afford it. I couldn't care less.