The Apple Watch is not useful enough to warrant those prices. It's not something I can see myself buying any time soon. Apple should have stayed out of this market, in my opinion.
If even Apple can't make the smart watch useful enough, I dread to think what competitors ones must be like. I imagine the Samsung smart watch is a train wreck but clearly far cheaper. Right now, I feel like the Pebble is about as far as smart watches should have gone. They'll take advantage of this and make sure their products continue to be affordable and desirable.