We'll see. I disagree, if that product releases.
They don't have supply built up as we know they discontinued production. The amount of software engineering talent required to sustain that product is very, very expensive. If they are exiting the space those engineers should be redirected, and in fact I'd expect news about that before any news about hardware future to be accurate.
If it doesn't release, absolutely for sure it was a failed, misguided experiment. Having a strap design done does not necessitate a $4,000 consumer product that will have minimal to no new features or long-term support, considering Apple is the only one who can reliably create content for it.
Tim Cook values customer satisfaction and they'd be willfully releasing a product that will not offer it, if the rumors about the hardware are true with minimal future support. For the initial version that risk was necessary (if stupid, it should have been a dev kit), but as second one – no excuse.
We've had like 50 stories about this interim version over the last 18 months and a big part of that I strongly feel is just to keep the news cycle 'interesting' and to spawn debates for engagement.