Do I have it right that if the phone is in use (making a phone call) that notifications from email cease on the watch, as long as the phone is unlocked?
Yes. That's exactly right. If your phone is unlocked, you will not get any notifications at all on the watch. The assumption is that you're using your phone, so you'll get them there.
Yes. That's exactly right. If your phone is unlocked, you will not get any notifications at all on the watch. The assumption is that you're using your phone, so you'll get them there.
Unfortunately you haven't, but I would love to see this setting too. Go here and request it... http://www.apple.com/feedback/watch.html Hopefully if apple gets enough requests for this feature they will add it.
This is something I hope Apple improves with a future update. There are some scenarios where I'm using my phone (talking on phone with it to my ear for example) where seeing noticications on my watch would be beneficial. Honestly, I've gotten so accustomed to getting notifications to my watch I just prefer to get them all there while I have it on.