I feel like someone shouldn't be able to walk into the store and purchase an apple watch that someone else has already pre-ordered online and has to wait months for! that would be ridiculous, and the opposite of the customer experience Apple is trying to achieve. They should just put all resources into shipping to pre-order people first, and only start stocking the stores once the people that pre-odered on 4/10 have their watches.
I can't imagine any other solution making sense. The original scheme was misguided but now they are in the vortex. The only thing they can do now and keep any sort of goodwill would be to do as you say and marshall all of their resources towards fulfilling the pre-orders early and then "re-launch" in store after the pre-orders are done. Once the April 10 pre-orders are satisfied then take ORDERS in store until the inventory can catch up with the demand.