Some watches get their time from satellites. Are they therefore not watches? I don't think Apple are trying to be smug (no more than normal anyway). They are just trying to align the

watch brand with the high end watch market in peoples minds. In terms of use, it doesn't matter really. But it will have a big impact on the

watches market acceptance. At the moment, smart watches have a geeky, rather sad image. Apple is trying to realign that. If they succeed, this will be to the benefit of all smart watch manufacturers, as the market will explode.
They've spent years designing this thing. While they have no track record in the watch industry, can you hardly expect their marketing blurb, to say that? They're blowing their own trumpet, thats what companies do. And providing they deliver a product that people want (still to be proven), whats wrong with that?
Exacty and in doing so Apple have achieved their goal! People will look up the word (or have it explained to them), see its link to the watch industry and a connection will be made in their mind between it and the

watch. Not for everyone sure, but it's a start of breaking the "smart watch" image mould.
It's marketing. Who cares? As long as they deliver a quality product I'm happy.
Time will tell. You might be right, or you might be very, very wrong. If this thing sells they will have busted open a new product class. Yes, I know it existed before, but quite frankly it was small niche and pretty much a joke (smart watches NOT Swiss Watches). To be fair to Apple, they've spent quite a while developing this product and a lot of that time seems to have been spent studying the existing watch industry and consumers expectations. I've no problem with Apple trying to become apart of that club.
EDIT. Having thought about it a bit more, I don't think Apple really intend to threaten or replace the exisitng high end watch makers. I suspect this marketiing strategy was all about directing the discussion towards a comparison between the apple watch vs. high end watches as opposed to the apple watch vs other smart watches. By cleverly shifting the arugment, they have managed to at least create a tenuous link between their product and the swiss ones. In the end we can all buy a watch that tells the time for about $2. We choose to spend more. A lot of those spending choices are about image. Apple knows this and so do all the high end watch manufacturers. They're playing the same game. This battle is about the "old boys club" vs " the young upstart". If you want to be brutally honest, both parties are full of BS.