Which is all well and good; there's a market for hideous stuffed animals with human teeth [1], but that's not an argument for Apple (or Samsung, or Google) to get into it. Basically, it seems really out of character for Apple to do this sort of thing. To be honest, I would expect a Google Glass sort of ubiquitous computer before a "smartwatch"; at least the former has the potential to turn into another pillar for Apple.
Yes, that was the second sentence I forgot to type. There's some need, but probably not one that Apple deems large enough to necessitate a new product category.
[1] http://www.etsy.com/shop/cathairandteeth -- I have one and it's awesome