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As someone that's been using the Freestyle Libre system for about six months I'd say that the Libre definitely ISN'T a novelty. The difference between real-time and the results that the Libre gives are about 10 minutes different. The Libre - and other CGM systems do not measure blood glucose levels but the fluid within the body. None of the CGM type systems will be as accurate as a traditional blood finger-prick but they're getting closer. Medtronic and Dexcom both state a degree of accuracy - the same with the Freestyle system.
The Libre does display the trend of what my blood sugar levels are doing - stable, going up or down. The Libre has been designated as accurate enough to base insulin dosing decisions on. It did take a few weeks to become comfortable with it vs a finger test. There are differences between what the FDA has decided vs what the rest of the world gets. In Canada. and the rest of the world, the sensor can be worn for 14 days and readings available 1 hour after the sensor is installed. The FDA says 10 days and (I think) 24 hours after sensor installation for readings.
Everybody's mileage will vary. I find the Libre to be pretty close to what a finger test gives me. The Libre definitely has a sweet spot where the accuracy is better. If my blood sugar is high, the Libre and blood test have a higher discrepancy. When low, the discrepancy is a bit off but not as much as when high. When my glucose is within my "normal" range the accuracy is very good.
The new app will mean I have one less device to carry around. Right now I have my phone and a reader to scan the sensor with. If I can do it with just my phone my life improves. If I could scan with my watch, even better. Although as the sensor is worn on the bicep scanning my left arm with my left wrist is more difficult. The sensor only has a certain range in which the reader can scan from. I used to do 5-7 finger tests a day. Now I do 1 in the morning and rely on the Libre, only doing another finger test if I feel something isn't right.
Far from a novelty. This type of device is improving the life of diabetics but you need to know what you're doing with it. You're not handing your life over to a device but getting a tool to help make better decisions. The cost of the Libre is much lower than the Medtronic or Dexcom CGM systems which makes is more viable for some.
I think a non-invasive system is a long way off. The accuracy of a non-invasive device will be very problematic. Different skin tones, tattoos, body hair, watch snug or loose, etc. Apple will probably work with medical companies rather than build a glucose sensor into the watch. Any device that gives medical advice has to go through so many approvals it would be years before it came to the public. When Apple is introducing new devices every year, a glucose sensing watch that could take years to approve and then need to be re-approved when the next model comes out doesn't work. The Libre has been available in Europe for (maybe) 2 years. Canada since summer 2017 and only recently in the US.