I do see Apple retaining the Series 1/2 in the line up. [...]
For example, Series 1 is entry level, Series 2 is offered in stainless/aluminum and Series 3 might have exclusive features (LTE) not offered in the lower models and includes the features that the other models have.
I don't see the use case for keeping Series 1 in the lineup (with one exception - see further below). They would need to significantly lower the price to make it a real entry model and thus would risk to put price pressure on the higher-tier models as well. Besides - Apple does not like to change price points once they're set.
The improvements of Series 2 over Series 1 (and 0) are quite significant and would make Series 2 a better contender for staying as an entry model imho.
I very well could be wrong, but I don't believe Apple will discontinue the Series 1/2 after one year.
While expect to see Series 1 leave the lineup in some countries, technically Apple will probably keep it as entry for other countries, which get Series 3 later or are more price-sensitive. Similar to the iPhone 5 having been sold in some countries until very recently iirc.
But then again, I still doubt an Apple Watch release this Fall in spite of the most recent rumor indicating a September release.
The least I'd expect is some enhancements in form of sensor bands. But I could also see a dedicated Series 3, as progress in the small wearable form factor is still fast, so a YoY update is not that improbable.
- somewhat important, but not a line in the sand: LTE (because, going for a run without your phone is dangerous, so having calls/SOS that works without a phone is a major upgrade)
While I can understand the urge to have some communication device around, I would not call it "dangerous" to be without. Where are you doing your runs?
It's a watch with limited abilities
Despite the name I don't agree with your evaluation of it being a "watch" only, much less one "with limited abilities" (whatever the exact definition would be). Even a Pebble, which is pretty limited in comparison to the
Watch, is far more able than any standard watch out there.
Of course you can always find specialists that might be better for very specific use cases, but in general I'd consider the
Watch a heavily miniaturized computer that happens to sit on your wrist and can do a lot more things than a mere watch. Oh, by chance it also displays time (and very accurately so
).