The "smartwatch" from Apple and Android is not a good idea. Fitbit and Pebble are closer to the right direction. Apple/Android keep trying to make watch-sized smartphones. But they will never compete with actual smartphones, they will just always be annoying inferior smartphones on your wrist.

The key factor is to consider which senses are optimal UI for each device. Smartphones dominate the visual and audio senses. Smartwatch simply can't compete there. So smartwatch should have a very simple very low power display like the Fitbit and Pebble and maybe a simple speaker/mic.

So what sense is the smartwatch good for? It's touch. There is a lot of potential of using vibrations/touch as a UI. For example, I think the Apple watch vibrates for turns when you do a Maps route. That's a good start. They need to focus more on things like this. There's a lot you can communicate with vibration, kind of like morse code (such as two quick vibrates, a long vibrate, etc.)

And now Apple has a very advanced touch sensor (the new one in iphone 7). Get rid of that silly big screen on Apple watch. Put the touch sensor there. Why not just allow thumbprint scan, wave my watch at a Apple Pay terminal, and buy things? Way less effort than taking out my phone.

These kind of pure touch and vibration UI is a huge open field. And I think Apple somewhat understands this. But they need to make the big step of dropping that screen. Because that's not where the smartwatch is strong. And it would also allow long battery life which is more important for smartwatch. People are used to daily charge for phones. But much less tolerant of that for watches.