I will let you in on a little secret. They actually aren't any different. If I am paying the prices they are asking, especially for the Edition, the last thing I want to see is a functionally identical version in a Walmart circular on sale for $348.98 with a $50 gift card. It just doesn't fit the "fashion premium" image they are clearly targeting. It would be one thing if there were an actual difference between the three versions other than extremely overpriced materials, but there isn't.
I wonder what will happen when the teardowns show that the Sport and Watch are within a few dollars of each other to produce? You see Rolex, Burberry, Omega, etc don't have dozens of sites tearing down their product and estimating cost to produce. How will Apple (or the blind followers) spin it when the Sport costs $200 to build vs. $210 for the Watch. Or that the Edition costs $1200?
The inner workings are not any different. Same can be said of most "luxury" watches, too. They have a very wide range of prices in one Rolex series, but they're the same internals. Does an 18K gold Rolex cost as little as a SS Rolex from the exact same series? NOPE. It's more expensive.
Apple isn't Rolex, though. Apple is a tech company that has decided to make a wearable device.
I think most people know that they WORK the same way. The choice of which model to purchase has to to with style and how the user wishes to wear the watch. Want it just to wear with super casual clothing and to work out? You'll probably buy the Sport model.
Want to wear it to work in a corporate setting and also be able to wear it when you dress up AND wear it to work out?
You'll probably buy the Watch or the Edition line, depending on whether you like SS more or less than gold and how much money you're willing to spend for the "look" you want.
The people who send their iPhones out to be gold plated and/or diamond studded KNOW that their iPhones WORK the same as everyone else's. They were just willing to pay extra for the "look" they wanted.
That's all this is. And you're right. Nobody is tearing down luxury watches to explain that the 18k with diamonds works just like the SS model without, but it's sort of a "duh" thing, number one... and number two? They aren't Apple products. Tech stuff always gets torn down because people want to know what sort of processor is inside and how it works.
Eh. I will not be surprised to see the lower end of the Watch (the Sport) sold pretty much anywhere you could buy an iPhone, eventually. Right now, they may retain the "exclusivity" in order to get the launch to be as effective as possible, but if this becomes an established line with regular updates, it will be sold everywhere they think they can sell it.
They are in business to make money. Not everyone has an Apple Store or a high-end retailer near their home. But, most have a Best Buy or a Walmart. And if all they want is an Apple Sport Watch, why on earth should they not be able to see one in person someplace?