Haha. They have not looked at my video, so I have a strong chance to see the same email soon.
It is a little bit annoying that they asked for so many things, but then knock you out with your first line.
On the other side, thanks to this application, I feel that I am more concise. It is all about staying positive and moving forward regardless what happen.
Less people wear watches (number still important) because they can get time through their phone. As lsiunsuex mentioned above, a watch could be useful for notification, taking away the need to look at your phone. In this case, some people owning a smartphone (and not a watch anymore) would be interested in going back to a watch.
If a watch gives you important information regarding your health, would you not be interested in wearing one?
For the design, it is a harder one. They are two major segments, Tissot & co on one side (more fashion), and Casio & co (more practical). Apple would have to pick one segment instead of going after both like samsung or sony did. If it works, they can later attack the other segment.
Their big challenge would be the battery life. No one wants to have to charge a watch every night. They will have to work hard on hardware and software to solve that problem.
Like you said, Telling time should be the number 1 feature! haha