When the iPhone was first announced and then released, many misunderstood what it really was in part because it was called a 'phone'. It was in fact primarily a mobile Internet connected computer. The phone aspect was merely a familiar function. Almost all the interesting stuff had little to do with making phone calls.

The Apple Watch seems to be following a similar arc. It is not a 'watch', it is a very mobile Internet connected computer. A sensor laden device to boot. Most of the interesting stuff will not have much to do with telling time.

Looking forward a few years and hardware/software upgrade cycles, it seems likely that the Apple Watch will get slimmer, better, and more capable. Feels like the iPhone original launch, but already way more polished. Should be interesting to see where Apple and the developer community can take this.