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They seem like they’re directly the same category of product at a glance.

Yes, and an office PC and a gamer PC are both PCs. Pick and choose another example, using eg. car models.

What's the major differences between them? I can't really tell from the marketing material for both, they seem very much in the same class of watch.

Telling time, showing notifications, and tracking sleep is 99% of what I need the Watch to do, and Pebble could do that with a week-long battery life.

They’re still not comparable products, you just use them the same, limited way.