It doesn't have to be a Ferrari for comparison. That's just the extreme. How is a Ford Focus compared to a low end luxury SUV? That's a more accurate analogy. Some people just want a car, some people want one that can also do more things and is nice to ride in.
Mine is used for notifications, alarms, quick replies, etc. If the watch could do more without actually opening an app, it would really become more useful. Give it an action button, have it work similar to a Flic in that you can program a few different functions to that button depending on press, double press, hold.