I don't think any smart watch == jewellery argument works, because jewellery doesn't require software updates. There is nothing timeless about modern electronics that need battery replacements.
I think that for any mass-market adoption (arguably not what the Pebble Time is aimed at), any smart watch will have to bridge that divide. Most people buy a watch as a fashion piece, not as a practical tool.
Maybe watches can be practical tools again, and not just a status symbol hanging off your arm.
Fine watches are only limitedly used as status symbol. Look at forums.watchuseek.com for afficionados who prefer keeping their watch for them - collecting them for example. Also note that, if you are unfamiliar with watches, you might not spot people wearing expensive watches if those are no Rolex.
For some people they are... and maybe in the future they can be both (hence Apple making a smart watch with gold). It will probably segment, but the average non-techie probably wants fashion over practical.