Fascinating discussion. A few of my own thoughts.
First I'm a die-hard Apple user, started using the Macintosh around 1990 and would never ever, ever, consider using any other computer. Didn't get the Ipad and then I bought one, now I can't think of life without one, however never bought an Iphone and probably never will - however know lots of people (understatement) who can't live without them.
I speak primarily as a vintage watch guy and IMHO this watch will have no effect whatsoever to that market and quite likely not much to high-end mechanical watches either.
In terms of the vintage watch market, well that is not driven by functionality (as has already been said), very broadly in my experience there are two types of vintage collectors. Those driven by nostalgia and those driven by the fascination of the object and it's history. For example, twenty years ago steam train memorabilia commanded a lot more money than it does now, because the people buying it were buying items that reminded them of their youth and their love of steam trains. That market has aged and is passing, the current collector market no longer has been brought up with steam trains and so no longer is interested in that kind vintage items.
However on the flipside you can spend a couple of hundred dollars and buy a dive watch/computer that is certainly a must for a serious diver, unbelievably superior to what was available to a diver in the Fifties. In theory this should have killed the market for the anachronism that is say, a Fifties Blancpain Fifty Fathoms from that period, who wants a functionally useless diving watch. Yet in the past five years this watch has probably double or tripled in value.
For modern watches I feel the wristwatch has become something very different for the average male collector, it's male jewellery. Besides my wedding ring I don't wear any other jewellery and I'm sure a lot of men are like me, so the wristwatch represents the one personal and intimate piece of Jewellery I choose to wear.
In two hundred years from now do you imagine women will no longer wear necklaces or earrings or rings? I would argue the wristwatch now occupies that role for men.
If you walked into a room and everyone was using the same phone as you, no one would care. If everyone was using the same laptop, no one would care, but if we are all wearing the same watch. Would you care, say in the same way as if a woman went to a party and walked into another woman wearing the same dress!
One of the biggest growth markets of the last few years has been men's luxury clothing, would the man who goes out and buys a Kilgour Jacket or Tom Ford suit feel that the Apple Watch was just the perfect accompaniment to it.