Oh for crying out loud ... First, there were dozens of fashion people invited to that event. Second Apple's current TV commercials promote the extremely "gadgety" features like sending your heartbeat to a loved-one, or sending a short doodle to them to show that you're thinking about them. Using it as a camera remote control. Animated watch faces! Do you really think that being able to conveniently take selfies, or take a FaceTime call is going to turn off people who prioritize the temporal shallowness of fashion? I mean, do we really think Pharrell Williams, Drake, Beyonce, Katy Perry will think the watch is too gadgety if they are able to do these things? That they'd rather pull out their iPhone and selfie-stick to get a quick spontaneous picture with a friend or fan for their twitter pages?
The WHOLE point of the watch is that you can leave your phone wherever it is and conveniently access it. The fact you can take a phone call on the watch is proof enough adding a camera to it would be a logical priority for it. FaceTime is a huge business for Apple and making it as convenient to take a FaceTime call with the watch is just as important as taking a phone call. Otherwise, why not just glance at the watch to see who's calling, and if you need to take the call, just pull out your phone. Even when I get to my phone to see who's calling now, sometimes I miss it. That's why you can take the call on your watch ... because it makes it more convenient and less likely you will miss it. The same thing applies to FaceTime. If FaceTime weren't important to Apple and its customers there's no reason they would have pushed cellular carriers into providing it over cellular connections at no extra charge.
We'll see who's ultimately right by next April, so it would seem we will have to agree to disagree for now. I do agree they will have to find a way to make the camera more discreet on the watch than it is on the iPhone because it is more of a jewelry item, but I have no doubt they are working hard to do just that.