I get the feeling that the iWatch will be the next "Apple will make a full sized television." Maybe it will happen, but only after 5 or 6+ years of analysts saying it will come out at the next Apple event.
Look at Samsung's watch. It's big, it's ugly, it requires a high end cell phone, it's battery is only good enough for about a day, and it's $300. Maybe Apple can do better, there is a long way to go for something that fancy. If you go to something simpler like a Pebble, there is less room to stand out.
Besides, does anyone think Apple can resurrect the watch industry? I'm sure they'd sell tons, but nothing compared to the tablet or phone markets.