To people who don't have an iPhone, yes, it's a disappointment.
Given iPhone sales numbers, though, I don't think that market is Apple's primary concern. Non-iPhone owners are usually said to be more price-conscious (preferring cheaper/better/whatever Android phones), and those owners have always had choices for alternative watches that are cheaper/better/whatever than the Apple Watch.
Apple's flexing their market muscle here by forcing cell phone vendors to sell cheap plans that share the same phone number between the iPhone and the Watch, which makes it pretty exciting for those of us in the US with expensive plans. It's easier for me to justify $10/mo for my Watch to have connectivity with exactly the same phone number as my iPhone back at home.
> "Apple Watch Series 3 (GPS + Cellular) requires an iPhone 6 or later with iOS 11 or later. Apple Watch and iPhone service provider must be the same."