Actually,of the people I know with both lux watches and an Apple Watch, once they started wearing the AW the lux watches stayed in a drawer for about the first year and after the second year thought is given to selling the unused lux watches. (Oh and I live in Switzerland.)
The wrist is limited real estate to be populated by the thing giving the most utility (and that's not a traditional timepiece.)
Smart watches will get better and better, offering more utility, battery life, eventually constant on displays, etc. Traditional horological products won't really get better as they are at the top of their form already; all they can do is try to add smart content that does something without making their products too thick or less mechanical. This will be exceedingly hard to do (esp without an ecosystem around the product.)
The Swiss won't go out of business but I think they have already lost a significant part of the market and within 10 years might lose 40 or 50 of their customers.