With the improvements they've made to fitness and performance with watchOS 3, I reckon these were designed with an AW2 in mind, probably to come out with the software upgrade in September.
Apple's problem is not the hardware. From an internal technology perspective, the AW probably already far exceeds anything else on the market today. About the only mainstream technologies it lacks are GPS and a barometric altimeter. The problem is crap-turd software (OS, apps, and the supporting mobile and web ecosystem). The Watch and Activity apps on the phone royally suck, and they will need a revamp for iOS 10. I wonder if Apple has any plans to enter the current millennia and build a web site like the entire rest of the whole fitness and activity universe?
The sharing and social features are key, because Fitbit is eating Apple's lunch in the activity space. But, Apple will still be hamstring the if other tools have no way to push data into the iPhone Activity and Watch Activity apps. Until Apple grows up and builds bi-directional activity and fitness data movement between Watch↔PhoneApp↔WebApp, then it will be a 2nd tier activity tracker and a fitness poseur.
Here is my personal case study... we took a family vacation with a lot of walking activity. Several of us have Apple watches, and we all have Fitbits. We used our Fitbits, because they do the best job of tracking activity and showing each of us and others what we were up to. My AW also captured everything, but it is impossible to get a good picture of my activity from any easy UI.