I think that the classic advice for men is stated pretty well in the old book ‘Dress for Success’ by John T. Molloy.
‘A gentleman’s watch is thin, plain and gold, with either a gold or leather band. You can get away with almost any watch if it is obviously expensive, but no matter what anyone tells you, gentlemen do not wear skindiver watches or astronaut watches or Mickey Mouse watches to the office.’
So how does the Apple watch stack up against this advice? IMO, it can do pretty well, at least for the 40mm SS Gold. I think that the 44mm is a little large for formal occasions unless you have very large wrists - the watch isn’t supposed to jump out from your attire. Where it still falls down a bit is the thickness, but the Watch is also a young, evolving product and I would bet that it will get thinner.
Most Rolex models aren’t really dress watches - Rolex has always presented themselves as making products for adventurers and explorers. Though they usually have some dressier models, many other choices are equal or better for dress. The Submariner and Explorer are huge, and even the gold President is huge (and a little ostentatious) because gold has little structural strength.
The gold 40mm Watch actually does 2 of Molloy’s 3 criteria, and Apple has done a good job of disguising the thickness. I wish there were a brown leather band with matching gold hardware. As far as fashion goes, the Watch has some advantages over traditional watches. You can change the face design and color to match or contrast with what you’re wearing, and there is a wide selection of bands.
Here’s an example of a face that I would consider at a formal occasion. It’s simple, dark so that it doesn’t jump out, and I’ll allow myself one complication, usually the date but in this case the temperature. It’s the ‘color’ face, so of course it can be made any color that you like.