Let's be real. Who will be texting, making calls, taking pictures, etc.. with his watch? I don't think (I hope) that's the concept of iWatch that Apple will release, because that's just dumb. I hope Apple is smarter enough to show us something with some utility.
This is Apple's PR checking to see what people are willing to pay and when they come out under you will see folks going crazy.
If they are expecting people to replace this thing every 1-3 and at $400+ is no sale for most sane people.