[beagle3]

> It's a phone, therefore it can be subsidized by the carriers

Subsidies are non-existent in many european countries, and seem to be (at least somewhat) on the way out in the US. I don't think this is a requirement.

> It almost does everything a smartphone can, including having a lot of screen real-estate

... or, it does things a smartphone might but is not convenient at - e.g., an LED light is potentially much more useful on a wrist than on a phone. an NFC device is way more useful on your hand. The second factor (think two factor auth) on your wrist is also way better than reaching out for your mobile.