Watches aren't subsidized and there are thousands of dumb watches that people pay well over $350 for already.
* Samsung Gear - $199 [1]
* LG G Watch - $179 [2]
* Pebble Steel - $249 [3]
[1] https://play.google.com/store/devices/details?id=samsung_gea...
[2] https://play.google.com/store/devices/details?id=lg_g_watch_...
Compared to the existing precedent of smart watch prices, Apple's watch is $100 more expensive than the next highest priced model. This is, of course, what Apple does with all of their hardware, but whether it's unsurprising or not it's still a factual and relevant point to make.
It might have minor scratches but that's it.
A smart watch will probably not even power on 5 years from purchase (due to bad battery); or be able to pair with your phone (new phone OS might not be backwards compatible).
The body may have some minor scratches, but I think it only adds to the charm.
And chances are that's just the glass face, which takes minutes (and a few bucks) to replace.
They're generally intended to last a lifetime, however long that is, and possibly be left to heirs.
This will be interesting to watch (sorry!) over the coming years.