Though this thread seems to have veered off track a little bit, I agree with the initial sentiments. First, I wouldn't call those figures a flop, especially considering how niche of a product smartwatches are. Second, I also wish them well in their endeavors, because I also agree that competition breeds innovation. Sure, it breeds its fair share of copy-catting too, but without someone else to measure yourself by, there's less need to push the envelope.
I'm also one that doesn't want a separate data plan for my watch and just want the watch to be an extension of my phone. In that regard, AW has served me quite well through 2 devices now. While I won't be upgrading again for quite some time (as far as I can tell), I also won't be tossing my watch in a drawer to collect dust any time soon.