I guess most people buy it for the technology, and not the jewelry part of it. And then the cheapest model is the way to go.
Bingo. As much as Apple wants it to be a fashion item or viewed as fine jewelry, it's a tough sell for the average consumer given the relatively short tech life, high repair expense (w/ or w/o AppleCare) and unknown resale value a year or two hence.
I'm enjoying my AW Sport. I could buy into a higher range, but why? I don't really getting anything more for my money other than cosmetic enhancements. The money I don't spend on a "better" model is money that can be put to good use elsewhere or just saved.
I know people with more expensive AW's are happy and excited now, but I wonder how they will feel when next year's model ships. Invariably Apple will add new functionality not compatible or available with this years model. That's what Apple does. And we know now AW could use some processing enhancements based on it's sluggishness that seems to be more than s/w issues. Using iPad's as a guide, resale value could be as poor as 50-60%. Withe Sport you limit your losses so it's easier to move into the up-to-date model.