Actually, from what I observe, it's only the GenXers and Baby Boomers that don't wear watches as often. When GenX was young and hip in the 90s, it was cool to ditch the watch. We are no longer young or hip. Times have changed. The new generation is breaking our trend.
With the younger generation, they are quite popular. They wear them for fashion. I observe this because I am in grad school and see a lot of the fashion of the younger generation. For them, watches are not dead.