Sadly there is no "wifi" steel. It's LTE all the way. I'm an Apple fanboy and I think sometimes they just seem determined to shoot themselves in the foot. I'm happy for my watch to be tethered to my phone. The watch has 16GB capacity. I can (theoretically) run all day and listen to music without the need to "stream". However I couldn't do that because it would be flat within the first two hours.
LTE is great. And, what an achievement! But honestly? It's an occasional use luxury, for those that run or more likely those that forget; like me. And the UK is around 54th on the European 4G network table; so where I live since EE went 4G, I get NO service. so, if the customer service from EE isn't that great and the network isn't that great and the rates aren't that great; I'm unlikely to buy a watch that's offering stuff I can't or won't use at a rate I'm not happy with paying.
So, where is the steel, sapphire screen wifi watch Apple? And how many sales are you losing by not doing one? I'd hazard a guess and say more than you'd like to admit.