It's more than a minor annoyance. The problem is how to carry it. Pockets are out of the question (for those that have them) as is any sort of bag or purse. I used to have a band for my old iPod that would strap to my arm. I suppose going back to that contraption with a phone is a possibility, but considering the discomfort and weight, not to mention the possibility of rain destroying the phone, I would do anything to avoid that. And if it's on my arm anyway, why would I need the watch interface?

Easy, get a race belt.

These are nylon belts with a buckle and a small expandable pouch. They also have 2 toggles to attach your race bib too.

They are just big enough to hold your phone, keys and some cash or cards.

You'll see people doing fun runs wear them to avoid carrying a pack for their stuff. To prevent water damage, put your item in a ziplock bag.

Completely agree.

For less serious runners, the GPS serves no noticeable purpose. Without the GPS, the Apple Watch can still track your speed and distance.

It certainly serves some purpose to map your runs even for less serious runners. It would also be cool to have music without being tethered to the phone.