After reading every page of this, I've come to help
Let's see how it works out.
1. Price
Let's just get this out of the way now. Apple isn't making a Pebble Steel. Apple is make couture. Now, some of us realize some of you have no...
clue what that is and that is fine. If you are judging on the past efforts of gadget makers, your confusion is noted. For the record, there is not a single "smartwatch" currently shipping that is being built with the same class of materials and workmanship as the

Watch line. A couple are scheduled within the next quarter and, well, that's where they are priced too.
The competing product for currently shipping stuff is the

Watch Sport.
$500 Stainless Steel watches are not even *remotely* rare. $500 *smartwatches* are.
2. Gold
At the time of this posting, the base cost of 18K gold is $865.50 per *ounce* (75% of listed price). An ounce is fairly light...it is about the weight of the usb wall plug that comes with iPhones + 1 US dime + I US nickel in your hand. A typical metal watch weighs 4.5 - 6 ounces. Gold isn't cheap. As the metal used on and thru the watch is an 18K gold alloy...well, do the math. It has been reported that compared to both the aluminum and stainless steel models, the weight is "substantial".
Hopefully, this clears this up. Apple isn't making a cheap gold-plated watch.

Watch Edition is solid 18K Gold...which means, it isn't for "the Poors". Obviously and clearly...as it is an 18K gold watch, with sapphire crystals front and rear. Not plastic, not glass. Sapphire. "Look it up".
3. Tech
See: Pebble. This thing is
still kicking around. It is hardly anything and there are hundreds of apps and watchfaces for it. Interestingly, Google is noting ~175 Wear apps/wear-enabled apps
The WatchKit SDK drops this month...and you had better believe that like myself, Apple Ecosystem devs are more than ready for a new platform to exploit with both native and tethered apps. There is no "wait and see" in this ecosystem...it's Ride or Die. Anyone betting against the dev community on this platform has been ignoring history.
I'll put my chip in right now: that "ridiculous" $500

Watch will be a runaway success. People will be angry because they sold out @ pre-order and will be hard to get/constrained for weeks and weeks.

Sport will be available if you want it, but it won't appeal to folks that want something more premium as far as 'jewelry' is concerned than frosty-looking aluminum and glass. Los Angeles and the Valley will be swollen with

Watch Edition wearers. Far from a flop, it will be as typical as Teslas are around here...that is to say, where you live, you'll see an

Watch Edition with about the same frequency as you would a Tesla Model S.
Hopefully, some of this helps someone, because after 8 pages of foolishness, it became clear that there was a general lack of insight/disconnect from reality. For someone that has say, dropped like $4K since January or so for Apple gear, a $500 watch isn't going to even be something they hesitate over and $350 is practically an impulse buy.
-K