re: Apple iWatch: 7 Reasons It Won't Fly
You're assuming the iWatch is designed to replace the smartphone. It can't. The iWatch has to be a complimentary device, something to give easy, quick access to your smartphone, which may be stored in your pocket, purse, etc. This would be particularly useful as smartphones grow in size (5" screens are getting ridiculous to hold up to your head).
This also means the iWatch doesn't need network capability, just a bluetooth link to your smartphone. It could be something that is passive, only coming active for bluetooth reception when your smartphone initiates communication, thus reducing battery drain.
And it's not true that smartphones do everything better than a watch. A quick look at the time is much better suited for a watch strapped to your wrist than digging your phone out of your pocket. A quick calculator, calendar, weather check, etc. would be faster and easier on your watch.
NFC is the great red herring of the tech world. It's been around for years but no one has ever adopted it in earnest. Smartphones will bypass NFC in favor of apps like Apple's Passbook, because then you can load your debit card, shoppers card, rewards card, VISA, etc. all in one place. Merchants won't have to buy new equipment (they already have bar code scanners), plus phone manufacturers won't have to squeeze another chip into their handsets (more room for batteries). And, it can be password protected so someone can't take your phone and waive it across the self-checkout at Walmart and buy themselves a 60" TV on your dime.