When the Watch was first revealed in September, I misinterpreted the Sport model as the ‘cheap’ variant. As time has gone on though, I realised I was wrong. Cue and Cook wear the Apple Watch Sport, with sport bands. The Sport is a first-class piece of hardware. I jumped to conclusions and originally modelled the Apple Watch Sport as the iPhone 5c equivalent of the iPhone 5s, a pale imitation of the real deal.
Now, I see it more like the Sport being the main model — at least for this generation, the model I am recommending people buy. The steel and gold casings should be seen as luxury options, available for those that can appreciate the materials and higher-quality jewellery finishes.
If you want to stretch an analogy, you could position the Apple Watch Sport and the Apple Watch as the iPhone 6 and iPhone 6 Plus in the phone lineup, respectively. The iPhone 6 is the primary ‘new’ hardware that most people ought to buy. The Plus is the ‘added extras’ model.
The Edition doesn’t translate to the current iPhone range at all (although I don’t think you should rule out Apple making an ‘iPhone Edition’ in future). It is truly in the space of unnecessarily exuberant wealth, a field that Apple has not approached with any of its other products to date.