welp I got mine ordered so I guess next week I will know! sadly I had to order the more expensive Milanese loop to get the darned thing on launch day. I had a slowdown on my phone order and the store app seemed slower than last year, so by the time I got it ordered the delivery time on the sport band had slipped to later. I swear I think apple keeps like 2 of those in stock and then the only option is to order up $$. Oh well gotta have.
I've been wondering the same. It is definitely recessed. I think it has to be a mechanical button still since that is how you turn the watch on and off.