You are so right. I have been saying the following privately for several years but kept my opinion pretty much to myself on blogs as i didn't even want to take the risk anyone believed me. But here are my 2 cents on this now we are this close.
The 'watch' in iWatch is not a noun, it's a verb.
It is not 'watch' as in wristwatch or smart watch, it is 'watch' as in; 'watch over' or 'keep watch'. iWatch is not a thing, it is a technology. It may be Apple have some wearables to show the way at the front end or not, they may just be supplying the SDK to Polo Ralph Lauren for intelligent shirts and Nike for intelligent shoes and so on. There maybe an app for older iPhones that can do some things but only the new iPhone 6 will have the true dedicated hardware to fully utilize the output from iWatch wearables.
The iWatch technology is also a massive back end system that one day will be able to interface with your personal medical data, your pharmacist and your doctor.
It will be baby steps at first but iWatch will, in years to come, dwarf all else that is now Apple.
p.s. Ironically I suspect, if I am right, many will not see the big picture and be disappointed this isn't just about a new smart watch! AAPL may even suffer over this in the short term.
+1 - but where were you when a number of the distinguished members*** were discussing this very scenario a few months ago?
*** humbly not including myself in that group. I mean Dick Applebaum, Soli, Melgross, mstone, wizard69... and I believe even Relic chimed in before she disappeared of the radar for awhile. Sorry, but I can't seem to find the thread... and I'm off to watch footie... go BVB