I think this is a very good insight. UX is a huge differentiator. In the early to mid years of Android, Apple had no real competition. Although I have some qualms about Material UI designs (why does it lag when I press ON and OFF? why does it look and feel like dreamy cotton candy world?), the UX has gotten considerably good on the Android due to faster and cheaper phones. However, I do agree that Jobs absolutely nailed it with UX and focus on that area (much like how luxury car brands focus on the little things).

My answer to your exercise is that Tim Cook indeed tried to duplicate the same formula to a new device. Some problems are that there is such a small screen real estate, the UX would need a different approach. Another is market fit for the demographic that are into luxury. Would wearing the apple watch make you look cheap and "techie" or send other unintentional messages about you? The people who wear watch these days seems to be those that wants to flaunt their 100k Rolex or older generation. I remember people stopped wearing watches when cell phones displayed time, (I never wore one, I relied on my internal clock), an entire generation might have never wore a watch before, could the apple watch end up like the iPad where people first buy it out of curiosity and nobody bothers with it afterwards? Who knows but Apple will have enough cash to screw up several times now (if they do reach trillion dollar market cap). If Tim does make the Apple Watch a success, it would be huge for Apple. You just convinced your loyal iPhone buyer they need a watch now too. Experience and lessons gained with Apple Watch could lead to more wearables, maybe we'll see Tim do his take on the Google Glasses.