I don't think that's the case at all. My opinion is that nothing has been released that is appealing, aesthetically or functionally. Look at smartphones. What kind of market did smartphones have before the iphone? What kind of market does the smartphone enjoy today? I'm not saying Apple is the one to innovate this round, maybe maybe not. But what's been released now has little mass appeal.
I think smartwatches are a VERY useful category functionally, although today's smartwatches are not great examples of that. But give people aesthetics, coolness, exclusivity and all of the sudden everyone wants one. Look at the iphone, what percentage of consumers use 100% of the iphones power and potential? What percentage even use half or 10% of the potential? I'll bet you could take the majority of smartphone owners and from a functional point of view replace their iphone with a regular phone and functionally they wouldn't know the difference.
I hope Apple breaks into this as they have with the smartphone and tablet. They seem to understand you can have all the functionality in the world but if the aesthetics are not there then only the hardcore minority will buy it. Google seems too driven at shoving internet searches down your throat, that's why Google Now will always suck as a personal assistant and I shudder to think what it will be like on a tiny smartwatch screen. Plus I don't think Google has that aesthetics smarts, their products are still clunky and cheapie IMO, but they seem more willing to release beta versions of their hardware and slowly perfect them which is fine by me. Still, I'm intrigued and definitely want to check it out.