A Pebble watch meets your 1, 2 and 3. You can buy one right now if you don't care about fashionable good looks and the Apple brand. For a lot less $$$ than an Apple Watch as well...
It does 1/3 of what the Apple what does and is certainly not of high build quality and finish, so what is your point exactly?
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The watch in this case is fashion or function.
It is both, design people want to be associated with in public is fashion, and that's been one of the major point of Apple for more than 25 years or they'd be producing beige box like everyone else. The main difference is here you actually wear the design instead of plopping it in your house.