You've absolutely hit the nail on the head here.
Apple's strategy was always to offer the very best products, and let everyone buy them. On the day the new iPhone launched, the general public could queue up and own the best phone in the world, and nobody, no matter how rich, could have a better one. This is one of Apple's strongest assets, and the source of fan's fanatical loyalty, but they have thrown it away for the watch.
When I bought my iPhone, it was the best phone money could buy.
When I bought my iPod, it was the best music player money could buy.
When I bought my iPad Air, it was the best tablet money could buy.
When I bought my MacPro, it was the best computer money could buy.
The Watch though... I can't have the best one, and even if I was rich enough, I'm not famous enough to get the 'exclusive' colours.
I have a feeling that in 10 years, the folly of this new strategy will be painfully obvious.