Curious... what do you show them in your demo?
When people ask me about it my standard response is that I am very happy with it and that it is a convenience accessory to the iPhone...which I no longer need to pull out for quick glances and brief interactions.
If they seem interested enough to want to have a look, and I'm feeling chatty, I will show them some quick demo stuff that includes the Activity rings, standard responses to instant messages, the various watch faces (people like the Motion ones of course) weather, calendar (I use Fantastical), my grocery app (I use Bring) and Apple Pay. Maybe "Hey Siri, set this reminder."
If it's a friend or a family member I will let them try it on if they are really interested and want to feel the haptics and play around. I never offer to take it off outside of family and close friends, although I would let an interested coworker try it out. I believe that most people would need to experience it, even for just a few minutes, to even begin to understand the benefits and features. I had a hard time explaining and even showing what it could do to my wife. Then she put it on for 10 minutes and said, "Okay... that is actually really cool." She doesn't want one yet, but I won't be surprised if she wants one by Christmas. I also won't be surprised if she never wants one. It's not for everyone, but people are of course curious. Most are impressed when I show them even just one or two gee-whiz features, but I can tell others are not impressed or think it's just a geeky toy (especially since a couple of people have dismissed it as a geeky toy).
Sean