Spending $500-1000 on a watch is a lot, but isn't that unusual. However, spending $500-1000 on a watch that will be out of date and therefore have minimal resale value in a year or two is unprecedented. I had really hoped that Apple was going to lay out an upgrade policy that would allow you to have the latest version of the watch without spending that kind of money every year or two. Who would want to do that?
I suppose that if the overpriced bands can be used on future versions it would dull the pain a bit, but they haven't even said they will sell you a watch without a band so it might not even be possible to reduce the price of upgrading.
I am very surprised that they have not addressed this very obvious issue in any way.
Keep in mind that the watch is only $300/$350 for the sport, $500/$550 for the watch, and $9,950 for the Edition when subtracting the $50 cost of the band. The band is what drives up the price on the non-Edition models.
So, I could buy the $999 stainless steel with link bracelet this year, and next year I'll only have to buy the $599 stainless with sport bracelet (or - probably wishful thinking but - $549 for stainless with no band) and slip my link bracelet into the new watch. So It's not really $1000, it's $350-$600.
That being said, Apple products hold value well. If I buy the $999 stainless with link this year, I can probably buy the $599 stainless with sport band next year, and slide the sport band into my one year old stainless and re-sell it for $350, cutting my "upgrade" price down to $250... Much like upgrading an iPhone every year.