Great comment. Only correction I would suggest is that it only takes maybe a year or two at most for the better Chinese models to hit the market.
I seriously can't understand what appeal the tiny interface of a watch would have for any type of application a person might have/want/need beyond telling time.
For example, regarding the medical diagnostic applications, if I were going to acquire a device that had such a capability, why on Earth would I want it in a form factor with such a ridiculously small and limited interface?
One thing about small gadgets - the smaller they are, that means even a small increase in the interface size is dramatically significant. For example, if you have a 5" display and go to a 6", it will be a nice increase, but not overly significant.
Now if you have a 1" display and suddenly go to 2", that is a vast increase. Suddenly all these new capabilities open up with such a dramatic change.
So what is the appeal of going really tiny, especially for something like a medical monitoring application that you are going to want to have a decent device to provide the function, when having something even a little larger - like the size of a credit card even - is so much better/convenient/useful?