Fine watches are only limitedly used as status symbol. Look at forums.watchuseek.com for afficionados who prefer keeping their watch for them - collecting them for example. Also note that, if you are unfamiliar with watches, you might not spot people wearing expensive watches if those are no Rolex.
For some people they are... and maybe in the future they can be both (hence Apple making a smart watch with gold). It will probably segment, but the average non-techie probably wants fashion over practical.