That is correct it will not be able to make cell calls as well as receive, the LTE basically covers data and of course a monthly charge from your provider. I don't see the point of LTE with data when open wifi is available everywhere ( starbucks, Panera, Mcdonalds etc etc)
I'm still trying to understand the concept of using LTE to communicate data if it does not allow one to make a phone call.
We all know that bluetooth basically sucks and that it is a huge bottleneck in terms of quickly transferring data between the phone and the watch. I wonder if the addition of LTE will allow for greater and faster data transfer between the two devices and lessen the dependence on bluetooth. And maybe the LTE data transfer as opposed to bluetooth is needed for upcoming "smart bands" or other features that Apple will add to the watch.
If this is the situation I'm not sure it would be necessary to have a data plan with a cell provider if all the LTE will be used for is data transfer between the phone and watch.