I won't go into the credibility of Kuo's predictions, but I will say it's quite interesting to read the comments. As always you have three camps:
1) The Optimists: Those who are excited about the idea of an iWatch and don't care if it's any different from Samsung's offering as long as it's Apple-Sexy.
2) The Pessimists: Those who are just waiting to see post-Jobs Apple fail, with claims that Apple has lost it's innovation. These are also the one's who think watches are dead and Apple (as well as the rest of the industry) is wasting their time by even thinking about watches.
3) The Fence-Riders: These are the ones who are fine either way and just waiting to see what Apple announces before they form an official opinion.
As for me, I'm a bit of a hybrid of all 3. I'm a long time (20+ years) Apple user and iOS developer ( almost 4 years ). I've been keeping a close eye on the iWatch rumor-mill as well as observing the changes in the SDK over the last few WWDC events, and have to honestly say that Apple has been setting up for the release of the iWatch for some time now.
In the article (and comments) there's some doubt as to whether Apple can meet the challenges of making software for a smaller screen. I think that the features unveiled in iOS 8 point to a very simple solution, that's already available: Extensions. Specifically what's called "Today Widget/Extension". This could be what Apple has in mind for smaller screens. The iWatch would become and extension of the Notification Center on the iPhone. So developers would be able to bundle and Extension with their app designed specifically for the iWatch. Interactions would be simple (taps and swipes) like what's available in Notification Center.
There was a very interesting article posted yesterday (http://bit.ly/cooks-new-apple) which seems to shed some light on Tim Cooks vision of Apple's future: a more inclusive Apple. This is consistent with my theory of why apple pulled the iPod Nano, which was quickly converted to watches by the community and third-party accessory makers. It wasn't integrated into the ecosystem. It was closed to developers and the capabilities were very limited to playing music, checking the time and some basic Nike+ integration. This wasn't the future of wearables, but a stop-gap. Instead of just throwing some antennas in the Nano, Apple went back to the drawing board to rethink what the future of wearables would be and took it one step further. Now with HealthKit and HomeKit the iWatch is shaping up to be a real "must-have". Away to monitor your health and home with the same simplicity to add functionality through third party applications.
While Samsung dropped their wearable first, it's little more than the iPod Nano with the added antennas (exactly what apple avoided doing). Apple will change the game again with the iWatch and just like with iPhone, everyone will be playing catchup.