The issue is yield. If just one pixel doesn’t work in a panel, you have to throw away the whole panel. That’s why Apple started with the device having the least pixels, planning to work their way up from there. The iPhone has almost 20 times as many pixels as the Watch, meaning that the rate of defective panels would increase accordingly. The iPads and MacBooks even more. This is also why the current microLED TVs are composed of an array of many smaller tiles (each of which, incidentally, roughly matches the Watch resolution). A 4K or 5K monitor would have been the last to move to microLED.
Even before yield is the power and heat. Nobody has shown even a demo of a watch sized microLED with 300 PPI.
Watch has 300 PPI while the Samsung 110-inch wall TV is just over 100 PPI. It consumes 1kW while a comparable OLED TV uses 200W.
If it were just yield, Apple would have persevered because they've invested billions along with Osram, Sanan, and other suppliers.