Disagree strongly.
The SDK is an example of what Apple does best.
WatchOS is stripped down to the bare essentials keeping every App within a uniform UI.
If you want to port Donkey Kong to your watch then buy another smart watch that lets you do the geek stuff.
Personally I don't want a more "engaging app" on my wrist.
I want an App that I can quickly glance at to get quick information.
It's not game console or smart watch. Too many people are treating it as such and missing the entire point of it.
It's in an entirely new class of it's own which the majority of smart phone users haven't realised yet.
Which completely limits the platform, it will never be much more than it is now while the current guidelines are in place.
If the dev guidelines were as strict with iOS the App Store would've bombed. You say this is an example of what Apple does best but they've had success with it with iOS but thats about all. When the iPhone was announced in 2007 the OS was miles ahead of anything seen elsewhere on mobile devices so when the App Store launched everyone wanted to be a part of it, people could deal with the restrictive control apple imposed on it.
Apple has tried to use the same methods elsewhere and it just hasn't worked. I posted over on the 'Siri speaker' thread they've done a similar thing with HomeKit, there are so many hoops for hardware developers to jump through to implement HomeKit compatibility it just isn't worth it. Similar story with the Mac App Store.