For starters, the taptic engine was a production issue, not an issue with the actual watches that went out. It's the reason shipments have been slow, but all the shipping watches have the "good" part from what we can tell.
Notifications sound like a software glitch that will be fixed with an update. It happens with a $650-$950 phone, too. I had to reset my watch once so far in 10 days of use. I probably reset my phone more often than that. As for tattoos, it's the case with any sensor that depends on light. Apple can't control every variable, and it's quite an extreme scenario.
Apple has never been particularly forthcoming with bug reports. That's nothing new.