It seems like the big dealbreaker for these is battery life. But a cheap watch with quartz timekeeping and digital lcd display can last a year or more on a single small battery.
Would it be possible to sandwich two lcd displays into the face of the watch, one that is cheap and one that is high-res full-color? Always display the time in the common janky digits, and then when touched, hand off to the nice display? You could even get them to quickly crossfade as the backlight turns on.
That way your $300 watch is at least as good as a $10 watch. Would that be possible?