I love it! This is all about style. Apple's won the "it's not a wrist computer, it's jewelry" battle before it even hits the streets. Two sizes, six cases per size, plus 24 band styles in multiple sizes... and it's not enough! It's, "I want to show it off, and when I do, I want it to express my tastes and personality."
And before you think I'm a cynic... Yes, I'm getting one. Might not even spend the bare minimum - I've liked the look of a Milanese mesh strap for a long time.
Would Apple be foolish enough to shut the third parties down when the more options there are available to the public, the more watches (and "accessory" iPhones) they'll sell? Sure, Apple'll make noise, noting that ill-fitting bands will not deliver the solid watch-to-flesh contact that's required for proper functioning, (Say it, Tim! "You're not wearing it right!"). But this is not the stuff of major lawsuits. A few cease and desists here, a few MFI licensing payments there, and that'll be the end of the headlines.
Sure, plenty of people would rather pay $75 for a link bracelet than $400 for Apple's - accessories like this will sell. The more cheap bands the are sold, the more likely others will spend extra just to boast it's genuine Apple. A few will spend $50,000 on diamond-and-platimum Cartier bracelets (how much you wanna bet that the Rodeo Drive jewelers will be loaning these out to celebrities at next year's Oscars?)
I'm also willing to bet that some of those Swiss watchmakers will give up on making their own smart watches (imagine, Rolex being accused of making knock-offs) and start selling watch bands - there's probably better mark-up in the bands than the mechanics, anyway.
Note that the same TAG Heuer exec who previously badmouthed Apple Watch has lately been saying nice things. Perhaps his parent company, LVMH (Louis Vuitton Moët Hennessy) is negotiating to have a Louis Vuitton Edition? Would Apple turn that down? If they can put a no-name leather strap on a $17,000 watch, how much could they charge for a Gucci, Prada, Fendi, or Coach Edition?
I can imagine the day when Apple's sweetheart deal with Ireland ends, and they relocate the international headquarters to Paris.