Even Apple softies like John Gruber basically admit what I said at this point. The Watch wasn't built with "overhead" space, they merely optimized the OS to work with the sluggish hardware as Apple did with the original iPhone.
iOS 1.0 was limited in functionality, but it was a great OS because it was focused on doing a few things really well. watchOS 1.0 and 2.0 were unfocused, lacking a real vision and purpose for the product to exist. I still don't think they totally understand why the product exists and they seem to be trying to retcon a purpose as they got public feedback, but watchOS 3.0 is a hell of a lot better and much closer to what 1.0 should have been.
I'm not disagreeing that it was a little unfocused, just disagreeing that it was prematurely released.
I guess what you say is premature and unrefined, I just define as Apple releasing earlier in a product lifetime than they usually do nearly for the exact purpose of of being able to let the audience discover what place it holds for each user. It's a much more personal device by definition and apple are aware this is very different to their other personal electronics, even the phone. That's why they built in more personalisation than they usually do in both hardware and software.
They learnt what the device is to more people than less. The cynical would say it's "beta" testing a product and premature, but that is t how I see the Apple Watch. It seemed pretty purposeful to me.