So basically it was a marketing update to incite you to buy the Awatch. Soon they will start crippling features that will only work if you purchase the watch.
Apple promised that the M8 could tell that you are cycling and log the distance (see september 2014 apple event on the M8). It logs steps, flights of stairs and distance, but cycling never happened, guess apple just swept that under the carpet.
I have taken a longer route but it still works. I use a Garmin attached to my bar and after the ride sync with Garmin Express. Garmin is linked with MyFitnessPal and Strava. Those apps collect my ride data for calories and ride analysis then feed into the health app. It would be nicer if my phone was the central point since its in my jersey pocket but I have trusted the Garmin for a long time and its resistant to rain. My phone is in a ziplock during most of the ride.