Wearables are different. Clothing and jewelry are things that aren't purchased primarily for rational reasons. Samsung, Motorola, Pebble, and others tried a one-size-fits-all approach to watches. It doesn't work. People don't mind having the same phone or Mac as everyone else, but they don't want everyone wearing the same thing as they do. I don't like the Sport Band, and wouldn't buy the Apple Watch Sport for myself, even if it were half the price. But spending $650 for a stainless steel watch is fine with me, and about the same as a nice regular watch will cost. Sure, it's a gen 1 product, but how much evolution do we really expect? Battery life will get better, maybe the bezel will get a little smaller, and maybe it will get a little thinner. But it will always be a small screen with limited functionality. This is one product where more choice makes it easier. Get the one that looks the best, mix and match bands, and get on with it.
I do agree that Apple is no longer so clearly defined by the Pro/Consumer/Portable/Desktop quadrant that Steve Jobs introduced in 1997, and that they are at risk of product creep, but that's partly because the market has changed. The "pro" market is less important than the consumer market, and consumer devices are so powerful now, not as many people need or even want the "pro" devices anymore. iPhone is simply offered in large vs. medium, with older devices kept around to hit price points. Essentially that's the same with the iPad, though Apple probably should cull the product line somewhat (drop the original iPad mini and perhaps all but the cheapest iPad 2 and iPad Air in favor of the iPad mini 3 and iPad Air 2).
But with watches, they absolutely need to offer lots of band options. The core technology is the same, whether you spend $350, $1100, or $17,000. Again, buying jewelry and clothing is not primarily a rational decision.