A great watch is expensive and made in Switzerland.
You forgot to qualify what makes a watch great (it's not the mechanics or the features just in case you're wondering). Watches are great because of the style, and the limited availability.
People who collect watches, those are the guys with serious money. Most (real) Swiss watches cost more than limited edition top end luxury cars. Even the crappier Japanese and American watches begin at 4 figures and move up from there.
A watch is a fashion statement. Not a toy.
Now, sports watches are a different story. But those are specific-purpose watches, worn for very specific occasions. Nobody's going to go to a black tie party with a sports watch. Hell, nobody over the age of 10 is going to wear one of them while wearing anything fancier than a sweaty t-shirt and shorts.
The wearable electronics fad is never going to take off using watches as the core. It'd be more practical to focus on electronic headbands. Now glasses, there's something there. But electronics in glasses are off-putting to society for a variety of reasons, and Google really didn't help the situation by being the first one to it.