Any potential the Watch has is clearly not enough for a strong app market to develop.
> Which developer wants to miss out on serving potentially millions of users?
You are forgetting that most developers already have millions of potential users on the iPhone with a market at least 30x bigger than the Watch's, and iOS has none of the limitations the Watch has.
Right now a Watch app requires an iPhone app, is hard to monetize, it cannot be sold on its own, it's slow and frustrate your users, etc. The only upsides are for Apple. It might sell really well because the core functionality provides enough value, but developers need to see a clear return for their efforts and right now is not there.
That is what in theory you think happens. What actually happens is that in very few app categories that is the case. For example, not a single game is losing market share to a competitor because they do not have a watch app.
You picked the worst example here: you really can't play (serious) games on your watch, so the comparison is invalid. But for a fitness app, or a messaging one, or a music service, I would significantly favor the service that has a watch counterpart, if not shun the other one outright.
I picked the biggest category of apps just to show you having a watch app is irrelevant when picking an iPhone app for everything in the app store but a very narrow set of categories, and you just demonstrated that. Yes, fitness is great, messaging somewhat ok, but what about the other millions of apps in the app store? what about a writing app? or a video editor? or a measuring app? or Dropbox?
Right now there is no reason for Youtube to make a watch app, and no reason for you to pick Vimeo over Youtube because it has a watch app.
As others have said, think of your Apple Watch app as an extension to your iOS app's UI: it enhances your iOS app vs. the competition that doesn't offer the wrist UI.
I've seen users requesting a Watch version in reviews for iOS apps. Even I have chosen some apps in the past over others specifically because they offered a Watch app, like navigation apps and flight checkers etc.
As a user though, I must say that if "monetizing" and "selling on its own" are more important concerns for you than make your product/service a better experience for ME, then I probably wouldn't want to use any of your apps.
That is all well and good, but that is not the point. The point is the App Store is bleeding watch apps every day, and Apple needs to convince developers that the watch is worth it. Even you admit that the only reason for a developer to have a watch app is as a defensive move, and that is what needs to change.
> Which developer wants to miss out on serving potentially millions of users?
You are forgetting that most developers already have millions of potential users on the iPhone with a market at least 30x bigger than the Watch's, and iOS has none of the limitations the Watch has.
Right now a Watch app requires an iPhone app, is hard to monetize, it cannot be sold on its own, it's slow and frustrate your users, etc. The only upsides are for Apple. It might sell really well because the core functionality provides enough value, but developers need to see a clear return for their efforts and right now is not there.
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