Hmmm. Mine is low, but not to the point I cannot hear it at all with background noise. It is fairly difficult though and seems to need a lot of quiet. Maybe I'll go to the Apple Store sometime next week and compare.
What did you use to test the speaker? You mentioned phone calls, but if you played music through the watch speakers was that inaudible as well?
No no, not at all. I was saying 'I don't expect to blast music on it' implying 'I know the speaker is small.' I know the watch doesn't allow anything through the speaker aside from notification sounds and phone calls. (Heck, not even FaceTime audio!)