You are taking offense where none was intended. It is just a fact of human nature that people want symbols of hipness and prosperity to be seen by other people. This usually takes the form of Jewelry or expensive clothes, but I perceive the current popularity of the Apple Watch is just another manifestation of this basic human urge.
The number one driving factor behind it's popularity is the anticipation of others seeing the purchaser wearing it. It might as well be a Gucci handbag, or Prada shoes. It's functionality or usefulness is entirely secondary in the reasons why most people want it. ($20,000.00 version sold out? Really? For Functionality?)
I'm sure that you and your friends are the exception. It is all those other people who buy the latest and fanciest jewelry to show how much better they are than the average slob.
And yes, Apple makes very fine products from a technical standpoint.
In a way, you are right on the high end Apple Watch Editions in 18K gold. Surveys of buyers found that most of them were bought as gifts for others. That makes the giver look good to the recipient.
There are many watches whose functionality is just as good or better than a Rolex. Why do Rolex owners buy Rolex Watches and not the others?