I guess you mean "smartwatch". Phones have been pretty successful so far ;)
Anyway, I think I do not agree with you, since I got the early ugly firstrun Android wear device from I/O, the LG Watch.
My experience is that the watch is by no means the next step in the evolution of personal computers or anything. But it is a very useful accessory for the computer you already have in your pocket.
Once you have it on your wrist you notice that
- phone ringtones are awkward and annoying to anyone around you.
- opening and unlocking your phone 125 times per day (This numbers is from Google) just to check for information and if there is something you need to act on right now is incredible annoying.
- voice commands, as limited as this is right now, is only useful if you can trigger it immediately when you need it. The few voice commands I find useful (set alarm, remind me to...) are much much more convenient if I can just say them.
So my point is that the watch is much more useful than a case, and only slightly less useful than headphones. If they start being equipped with more sensors and the cost falls below $80, they will become even more interesting.