More like the article author doesn't know the difference between RAM and storage, or read the specs too quickly.
It has 512MB RAM, 4 GB storage.
Also, at 42mm diameter it's 2mm smaller than the first Moto 360. Probably still too large for people with small wrists who don't like large watches... unless they just shrug and say it's a fitness watch, which are often huge.
Apparently besides having a touchscreen, it also has a touch bezel for navigation. Reviews say much easier than trying to use a small rotating crown.