Unexpected success of smartphones and tablets have made analysts and media into a habit of making stupid assumption that anything brought by Apple or Google will be market hit, will be the next big thing. However, I think iWatch and Google glasses will be flops. These are awkward ways of doing the things which a smartphone or a tablet can do more conveniently.
Anyway, I think iWatch is just a eye-wash by Apple, and the real thing under the cover may be porting of iOS to x86 for future iPhones/iPads. Sure, Apple may have signed a deal with TSMC. But should TSMC fail to deliver, Apple would want to be Intel-ready. This may turn out to be good for Intel as Intel will not be just a foundary but will get to provide complete chips to Apple for iOS devices.
To be fair enough, I don't think Intel's hybrids and convertibles will ever gain market traction either. These will remain very low volume devices and may even die soon. It is fascinating to see all different kinds of mechanism in a museum (stores). But very few enthusiasts would like to have them at homes or work places. Most convertibles in a tablet form are bulky tablets and defeat the whole purpose of having a tablet. Intel should focus on pure lightweight tablets with detachable keyboards as accessories.