You attack the Apple watch for what it lacks, yet list items it actually has. Additionally, it's clear from both brand's product information pages, that Apple's product is intended to be a smart watch with fitness features, while the Microsoft band, is a fitness product that has Smartwatch features.
Contrary to popular belief, many people who have reviewed the Apple Watch demo, or have spoken with Apple about the product, have stated that it will support many functions without being connected to a phone. While I 100% agree with you that the lack of GPS is huge, it's not a deal breaker for me personally.
The other sensors (accelerometer, Heart rate sensors, etc.), and ability to play music stored on the device over bluetooth headphones, will make it a good fitness option for people that don't track their workouts via GPS. For me personally, I don't need GPS tracking when I am on a stationary bike, elliptical, treadmill , or while running flights (stairs), as it is pointless. Like workout styles, different individuals will have unique key features they seek out from a fitness wearable, which makes all of the choices on the market quite awesome.