I see your point. I can't imagine needing instant access to notifications, but if that is a requirement for someone then yes I can see the device being useful. Obviously I am not the target demographic for such a device (thank goodness).
Oddly enough, by being more "connected" with the watch and having instant access to notifications, I was actually more disconnected from the physical phone, and it was nice. I was at my uncle's house the day I had the Moto 360 and we were all outside hanging out, playing badminton, soccer, tossing a football around, etc. The Moto 360 allowed me to be up to date with notifications, but also not be one of those "standing there staring at my phone" types. The watch decreased the amount of time spent staring into the digital world and kept me in the real world longer. So you get the benefits of constantly checking your phone (being up to date on notifications), without the negatives (constantly bringing your phone out, stuck staring down at a screen repeatedly, alienating yourself from social interaction by pulling out the phone, etc.).
Can't you use Apple Pay with your iPhone? Don't you already need to have your phone with you for the watch to work? How much harder is it to bump your phone on the reader than bumping a watch?
Taking your phone out and tapping it is really not very different than just pulling out your wallet and using the card. Your watch is already out and ready, just tapping your wrist on the terminal is much faster and more efficient. This is something Android Wear needs, it's the one and only compelling thing I saw from the Apple watch.
This smart watch period feels like when smartphones were gaining popularity and you had people asking why we needed smartphones. Do I
have to have a smartphone? No, but it sure is more convenient and efficient compared to having a flip phone and a GPS, and only checking my email on the PC when I get home. For many people, they say they don't need technology until they actually try it out and realize the convenience it offers.