I agree. Couple things I'd add to that list is decent battery life and water resistance/proofing. Apparently, it's extremely annoying to have to charge your watch every 2 days or so (my experience with the first Sony Smartwatch).1) reasonable price
2) look at least somewhat like a normal watch, not like tech jewelry
3) simple operation
4) not try to do too much
What I mean by #4 is that I don't think it should try to be a Rolex-meets-fitbit-meets-garmin-meets-iPod -- unless it can somehow do all of those things really well, which I doubt. It's gotta appeal to a wide range of people, obviously, but I think that at least gen 1 has to pick one or two things and do them exceptionally well. Like the first iPod was just music at first, but its size and ease of use made it far and away better than what had existed. The first iPhone lacked some features blackberries and other smartphones had at the time, but the remarkable touchscreen, browser, and (again) ease of use set it apart. Later on, the iPod and iPhone got a lot more features, but they didn't get where they eventually got by trying to pack every feature in to the first gen product.
First of all: It should live up to being an Apple product, which means delivering on its promises. If it claims to measure heart rate, blood sugar etc., it should do that accurately enough.
For me to wear one, it needs to be useful and good looking. Im very interested in what it can do related to health and fitness. Useful functions include blood sugar monitoring, GPS tracking and remote controlling the iPhone's music. But it needs to look good and not like a gadget/toy.
In order to be successful, it needs to be priced competitively. They should come up with different designs or cooperate with other manufacturers. Many feel a watch should be personal.
When Apple announced the iPhone I was sceptic and thought I didn't need Apple's greatness in my phone, I was fine with my semi-smartphone and iPod Nano but when it came out I knew I had to get one. My old phone seemed overtly complicated and stupid in comparison. I hope Apple will make the Galaxy Gear seem overtly complicated and stupid. I hope they will define what a smartwatch should be.