The price point for the watch is horrible. That doesn't mean the product will flop because I'm sure it's a success regardless of what random sites on the internet say when they have no access to actual sales data.
The stainless steel version cost as much or more than some versions of the iPad Air 2 with less functionality. It cost as much or more than some unlocked iPhones including the iPhone 6. In some cases it is as much or more than Macbook Airs. Not good value at all.
My significant other wants to get me one but it's hard for me to justify her wasting money on a low value product.
It's not unreasonably priced compared to other watches, though. Jewelry tends to be high markup. That said, I wouldn't be surprised if Apple tweaks the pricing in the future. They did so with the iPhone and the iPad.