I expect the world will shrug at whatever Google does, just like they've done with every other smart watch so far.
Honestly, I wouldn't be too surprised if Apple iWatch flops just like everyone else's smart watches - I don't think many people really want or need a device in this category. (Two other possibilities that wouldn't surprise me: Apple dominates the Smart Watch market or Apple never even enters the Smart Watch market.)
I'm much more interested in seeing Apple break some new ground in television than in wearable tech. Something that'll bring families together rather than drive them apart (that was the promise Nintendo made with the Wii U. So far the games have utterly failed to live up to that, or any other standard, by not materializing at all. I'm looking forward to seeing some asymmetric games that can bring casual and hardcore gamers together.)
I don't think it'll necessarily "flop," but I wouldn't be shocked if it wasn't at all as ambitious as some of these other manufacturers are aiming for. I'm honestly expecting an Apple health band, like an advanced Nike Fuelband with Apple design aesthetics and deeper iOS integration.
If they release a smart watch that's more in the vein of what we've seen thus far, as in, if it has features you interact with that make heavy use of a screen, I think it has potential to flop. It's not easier to read a message or an email on a watch, it's harder, and I can't really reply unless we're expected to believe that they've found a way to make dictation with editing perfect, which will not happen. It'd be uncomfortable to use it for FaceTime calls that lasted longer than about 15 seconds. And it's certainly not better than a phone for taking a picture in any way, shape or form, Samsung and your awkward and unsettling commercial.
I can't think of much a "smart watch" would do that would make my life better. The only non-sensor related features I'd ever be interested in seeing on a smart watch display or readout are basic notifications for calls or messages, time, stop-watch, steps count and other basic data from the sensors that would be easier to see while exercising as opposed to grabbing my iPhone and opening an app. For most everything else, my iPhone or iPad is always going to be a better option for me.
Watches exist more now as jewelry and/or to make a fashion statement. For most people with any sort of cell phone, they're simply not a necessity anymore, hence why so many people aren't bothering with watches at all. Making them "smarter" by making them more like a tiny phone on your wrist isn't going to be appealing to many people. But making them smarter by integrating lots of sensors to help you better monitor your fitness and general health levels, while also serving as a watch that can give you some basic notifications that might save you having to grab your phone for a minute...? That might work.
Make it cheap. Make it small, simple and attractive. Give it multiple day battery life. And did I mention make it cheap? $49-99. If it costs a lot more than that and is much more complicated, it won't take off. There simply, though thankfully, aren't enough Dwight Shrutes in the world that would feel the need to have a smaller, less functional computer on their wrists that costs as much as their iPhone. But if the price is right the focus squarely on sensors and health, I'll likely buy it on day one. I'm waiting on a Fitbit or Fuelband to see what Apple does. And I'll know if FaceTime ends up as a bulleted feature of the iWatch that I'll likely be looking at those other options.