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I suspect they continue to report it in the "other" category with Apple TV for a bit to hide some of the economics. But it will swamp that category, so folks will be able to back out the numbers.

Yes, the last sentence there says it all. Even if Apple doesn't officially report it won't be too hard to back out ballpark AW sales based on the last Q before release's #.

I don't really thing $349-399 entry price is high. Not inexpensive, but in line with advanced sport watches and just a $100 more than less advanced activity watches like the Surge. The metal versions are pricey but sometimes in retailing you have to be more expensive for a product to have value in consumer's mind. Plenty of designer label solid color T-shirts around for $100 and they sell in their proper market. Apple just giving something for everyone... or maybe nothing for anyone. That's the question we'll see answered later this month.
 
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