They ban the visible use of smartphones from swimming pools, yes. And in a number of other places (more often in more paranoid countries, to be sure, but they exist nonetheless). However, a facetime camera on a watch is an entirely different thing from an iphone. You cannot easily take video in a public changing room with a camera, but with a watch many people would be completely unaware they were being filmed.
Well if they ban visible use of cell phones in swimming pools, then what's the problem with visible use of watches? I presume they don't ban the actual smartphone, right? If someone is taking your picture with a watch, it's going to visible and obvious. Moreover, why are you wearing a smartwatch to a swimming pool when it's not rated for swimming?
And yes you can easily take video in a changing room with an iPhone without anyone noticing, that's why some gyms ban the use of iPhones at all in changing rooms. That has nothing to do with a watch which will be even more obvious that someone is taking a picture considering how it will have to be held.
Watches of all types are already banned in university examinations in many countries. The examiners cannot be expected to know which ones are capable of being used for communications, and so impose a blanket ban. This is mildly annoying but not the end of the world. With the advent of video on watches everything becomes far more serious. And again, look at the US response to Google Glass. The product was effectively shut down by the possibility that people would film unnoticed in public. The same will happen with the apple watch, and it's likely many other smart watches (including, for example, the apple watch 1) will be included in that blanket response.
Ah, school exams. Well as far as I know smartphones are banned in school exams as well. This is just the price of technology. I don't see how video is far more serious in such a situation since the watch is already banned because of communication.
Google glass was not shut down because of the camera only. And that was a completely different situation as the camera was clearly pointed at its subject, but people didn't know whether it was recording or not and that was uncomfortable for some people. If a watch is used to photograph others, it will be easily spotted thanks to the awkward unnatural contortions a wearer must put their arm into to do it.
Those are the disadvantages of which I speak. I predict that soon after the launch of an apple watch 2 with facetime camera, the use of even non-camera watches will be restricted by public demand.
Smart watches with camera already exist. Doesn't seem to be a problem.
Quality of a facetime camera relates to the size of the screen available. To show both the incoming and outgoing video is pushing it for a 38mm screen. Limited space and use are based on the size of an appropriate camera (say, something between the size of the one in the rMB and the one in the iphone) would take up a significant proportion of the space within the apple watch. The apple watch could do with both being thinner and having more battery life (IMHO), and thus giving up significant potential space within the watch is something I'd not be as happy with, compared with increasing the battery size or making it thinner.
the watch is a convenience. There are going to be some compromises with FaceTime, but then it's not intended for protracted conversations. I would be surprised if a user camera feed is even necessary in such a conversation, but certainly even a tiny window would serve the purpose without much sacrifice of the primary image. You say the camera would take a significant portion of the space without taking into account technological advancements and what Apple has access to that you don't. You realize the camera in any given Apple product is about 3 year old tech. And not everyone wants a thinner watch, and as long as battery isn't compromised, the small gain the camera space might offer is not likely enough to warrant the loss of the improvements.
There are so many things having a camera will benefit, over these manufactured FUD concerns you express here.