Anyway this is just my experience. Rolex don't "scream expensive", but maybe to a few folks they burp that message. Not a perfect comparison but my old well-worn running shoes cost like $200 (fancy I know ;) few people recognize them, from the ppl who do some think that's expensive ($5 of leather for $200 ZOMG!), some people don't think that's expensive. Just because something is expensive doesn't mean that product "screams" expensive. Just shoes. Just a watch. YMMV
And I completely disagree with your statement. If you are at least a bit into the watches, you know Patek very well.
The part about everybody-recognizes-rolex - well that ain't true either. Over 90% of blue collar workers would see some bigger watch, that's it. Most of my colleagues wouldn't recognize them, and I am talking about private bank in Geneva, home of Rolex (and Patek).
On the other hand, Rolex is literally one of the most recognised and reputable brands in the world. There are companies which track this stuff, and every study ranks them within top 100 in the world for brand equity, recognition, reputation, etc among general consumers. Just with a cursory look now, I see one study from 2014 which ranks them second in the world, only behind Disney:
http://www.forbes.com/sites/arieladams/2014/04/14/why-rolex-...
Don't forget, they sponsor a lot of stuff. You can't watch sports without seeing their logo everywhere. As I said, people wouldn't recognise a Rolex watch...but the brand, yeah.
I'd be extremely surprised if 90% of people in a bank in Switzerland don't know of the brand Rolex.
You're disagreeing with yourself and agreeing with him. His point (I think) is that they adopted a marketing and pricing strategy which promoted brand awareness and maintained brand equity to both the "lower classes", and to the "upper classes" and also to watch enthusiasts, simultaneously.
That is to say, poorer people might recognise Rolexes as being something special, and might strive to buy one, but wealthier people also see it as something special and strive to buy one. And the fact that poorer people can get them doesn't dilute their positioning for wealthier demographics. Or as you put it..."It's a brand bought by rich, knowledgeable watch nerds as well as plebeian, flashy status-seekers and everyone in between."
And I completely disagree with your first statement. I would imagine that almost every adult recognises the Rolex brand. Sure, people might not recognise a Submariner from a distance as being a Rolex, or a Rolex design, but everybody knows the name. Whereas, on the other hand, almost nobody would even know the name Philippe Patek. But then, that's their marketing strategy.