As others have indicated, a traditional watch has every reason to be round, but it makes no sense for a smartwatch.
totally wrong and such silly arguments are easily refuted.
digital quartz watches are more accurate and more foolproof battery/runtime wise than automatic watches that must be wound or they lose time (and they all lose 5-30 secs a day anyway). It's faster to read the time on a digital casio. Makes no sense to make beautiful traditional mechanical watches. Yet those are the ones a lot of people want, and in the space apple is competing in, it's the majority of watches. So, the makers are making something that doesn't make sense...I'm sure their billions of profit makes plenty of sense to the swiss watch makers.
beauty and fashion is more important to drive sales for such a needless device than its actual functionality (as the iPhone will do every task better than the watch). When jobs introduced the ipad he noted that netbooks don't do anything better than laptops. The watch doesn't do anything better, either. If it's gonna sell it's gonna be because it's fashionable, and a miniaturized iPhone is lame and boring and cannot mimic classic desirable watchfaces.