The problem was that Watson was a (largely successful) publicity stunt. In that sense, it falls in the category of sales and IMO is a top notch, A-player, demonstration of hype. It wasn't designed from the start to solve real problems, so it was always going to be hamstrung as a real product, regardless of how good the underlying engineering was.
* Edit to add a link to the papers they published -- https://researcher.watson.ibm.com/researcher/view_group_pubs.... -- which I remember skimming at the time and feeling like they were on par with any other typical ML paper. In general, research departments are run with an entirely different culture than engineering.