I guess I see your point, but really... the "special" thing was the introduction of the Apple Watch. Anyone who wanted (or still wants) that experience need only visit and Apple store to get it.
If you just want to grab an extra AWS because your granny needs a gift and she likes to track her exercise and keep up with FB Messenger? Why not drop in Target and grab one?
No, anyone who wants the experience can't always drive to the nearest Apple Store, especially when that store is hundreds of miles away.
If Target is truly just a warehouse for people to pick up an Watch sight unseen as a gift while they're shopping for housewares, or groceries, then that's great. The problem I have with it, as I'm assuming racer does, is that Target is replacing the Apple Store in markets were there are none. Also, Target is generally in the same markets where customers will also find a Best Buy, and probably a Sprint or T-Mobile store where the non-carrier specific watches are also sold. And there are also online retailers who will gladly ship to the customer without charging shipping or tax (B&H Photo) which can serve the function of delivering a gift straight to a customer's door. And in those markets where there's already another retailer, those other merchants will also likely offer a much better experience to the customer who needs to try on the watch and understand how it will work for them. Target may just as likely cost Apple as sale as luck into selling it, especially when it's $250 more than any other watch they offer in store, and more than an iPad mini 4, or depending on the model an iPad Air 2.
People who pick up a Rolex at Costco, are doing so because they are just using it as a warehouse. Those customers already know what it is and what it does. Target appears to be replacing the jewelry store model Apple has adopted to showcase the watch, for customers who have no idea what the Watch is, or how they would fit it into their lives. Customers who don't already know their wrist size, of which model will look best on their wrist. I shudder to imagine the useless sales staff at Target with a Stainless Sport box opened up and contents splayed across a cheap counter full of Casio and Timex watches, trying to figure out how the Sport band tucks under the strap, on a wrist that's too large.
Target as warehouse, fine. Target as showroom -- disaster.