If I buy a $10,000 luxury watch, I can anticipate it working beautifully and maintaining its value for decades. I don't think you can say the same thing about a gen 1 tech product.
If the Edition were for normal people, I would agree.
Once you hit this range of price, the item serves one key purpose: status symbol.
With that said, I think most of the market for luxury watches probably still will go with the timeless timepiece before purchasing a gen 1 Apple Watch. The watch will cater to a unique set of people who are typically both early adopters and status symbol-obsessed.
I figure Apple is saying, fuck it, we'll catch tens of thousands or at most hundreds of thousands, and that alone will make its existence worth it.