Your phone gets scratches and you replace it every year I assume?
My iPhone 6 has no scratches and I have no screen protector or case. The glass Apple uses is pretty dam sturdy and scratch resistant. Sure, sapphire glass is nice but I guarantee you there will be a new thinner apple watch next year, with FaceTime support or some other new features not possible on this current revision. I can afford stainless but I'm not a fool with money otherwise I'd have none.
Most wealthy people aren't foolish with their money. Broke people that want to look rich are. Them's there's the facts.
For real rich people, all Apple Watches are pocket change - Edition included. FWIW, Edition is sold out in China in minutes and the queue is long.
Poor people (who may or may not be foolish) do not have the luxury to buy any model of the Apple Watch, they are already priced out.
It's the people who are more in the middle, neither rich nor poor, that are more foolish with the money and care about a few hundred dollar difference (in reality, for the upper middle class, even hundred dollars is not that important - not pocket change, but not that much either).
At the end of the day a watch traditionally is a status symbol, or a tool that tells time. As you move up the social echelon you buy nicer and nicer watch to reflect where you are in life.
Apple Watch SS and Edition conveys that message and Apple is both kind and smart to keep innards identify to give user experience from the usability perspective the same, and leave material and price point to serve what a watch traditionally conveys - the social status and sophistication. Ingenious.
I do not believe next watch will be thinner, or design any differently. If Apple does that it would be one of the biggest marketing/design mistake if the are interested in the luxury market. Luxury brands keep their design for years if not decades to make it timeless.
I think it is safe to invest a little more in this "1st generation". Chances are over the next year or year and half, software and application would be improved drastically. Design would likely stay the same. There may be more watch bands. Hardware upgrades probably won't be available until late 2016 or 2017 at the earliest.
Just my thoughts. Thanks for reading.
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Hahaha!
Oh. You're serious.
My bad.
Did someone say something about Chipotle?
I am just offering a different point of view. What I think could happen if Apple executes this correctly... is pushing Rolex and co. into the "niche" market. Those premium traditional watch makers will still exist, but the message for wearer of those jewelries conveys "old world" luxury and to some point "resisting change" - which can be very negative in today's fast moving economy.
Apple could capture a good chunk of 21st century luxury that not only sends the message of sophistication and wealth, also conveys innovation, ahead of technology curve, progressive, a person who can adapt to change, and "no a fossil" and all that good stuff

I think it's a good signal to prospective employer for the new generation.
EDIT: In addition, imagine in 10 years time and people who wears a Rolex to a job interview: "Did you wear your grandpa's watch? How versatile are you, as a job candidate, if you do not keep up with the time (ironic isn't it?) Are you really that "wealthy" since you probably have afforded the same watch for decades and can't afford anything modern?
Just food for thoughts.