I wear a watch not as nice as yours, but it was cheap and gets compliments (just a random square guess watch with a simple silver face and date, 24 hr, and day of week wheels).
I definitely plan on buying a smart watch though, probably next generation (I want that lifespan, with the face on), or maybe a pebble steel if the color one brings the price down on the old ones.
If I can get a Zenwatch or a Moto 360 for $250, just a little smaller, and a little more life, I will.
I went without a watch for a while, thinking phone is watch, but since I started wearing one again, I miss it when I forget it.
For me the killer feature though is the customizable face, I want a Qlocktwo, for a fraction of the price. I am obsessed with time in words for some reason, I'm told it's crazy.
There's no market overlap for me I suppose, because I was a long way off from spending much on a watch, but I can see myself getting value from a couple notifications, and a watch face I like. I think they (smart watches in general, not the Apple ones, they have the battery I would need, but $350 is too much, and that's the frumpy one) will destroy the $150-$500 watch market. I'd be very worried if I were Fossil, or some other company in that range.
I think there's a decent chance they'll make watches over-all more appealing though, in which case the Swiss could win in the end.
I guess the real question though is about the batteries, if they are not replaceable, and only good for a year or two of charging, that's a real problem. I assume the CPU won't ever need to do much more with most of the processing coming from the phone, and the screens are already there from what I can tell.
yammer yammer, I'm tired.
Summary, I think the $100-$500 watch market will be destroyed, as people who want a watch choose those that can do a little extra. A smart watch with a good screen will be a logical choice for many people.