Its smaller and of much better build, fit and design, says EVERYONE who has seen both in real life.
----------
It runs indepedent applications, collects data through various sensors (including heart, accelerator, etc). Data of all kind can sync back and forth between watch apps and phone (so available when not connected). It plays music and displays photos (and probably plays videos too).
It has a better screen, a better soc, a better build than other watches. Apple ARM SOC are more efficient, so it is probable that it would have a better battery life. It has two different imput methods not seen on other watches. People who have actually seen it and handle it said that it feels and looks better and more solid than other watches. It charges in a different way than other watches.
Finally, it does MORE than the moto 360 in a smaller package.
So, where does you FUD comes from exactly. Pullet straight from the air. When this sells 10M+ copies, including 1M of the two more expensive model, will you come here and lament this "failure".
----------
Yeah, and we all know how much the original Iphone was a total failure...

----------
Man, another drama queen...
Design and fashion ARE part of the same continuum; they always have been. Thinking that they are different is your problem, not Apples.
You do know that a watch is a wearable, that something nicely designed that you wear is by definition, something fashionable. It always has been.
If Apple and the people who buy its phones didn't care how its product looked they'd make something like Samsung phones.
Fashion is about projecting who you are into the world. It is about identity and how you want others to see you. It is something quite hard to do and if Apple does it well, they'll be the first tech firm to do it.