Something that will never allow me or any watch keyboard to have stellar ratings is the fact that Apple does not support keyboards system-wide on watchOS, like they do on iOS. Yet my competitors casually had 4.5 stars - and one of them is still up.
As for some of the particular claims, there were a couple of days where the app was paid, and had an IAP - as part of my transition to a free app. Still, the initial paid download let you use the keyboard as long as you want on the watch, but without swipe, themes and other premium features. It was an awkward transition, unfortunately, and those are the battle scars.
Anyway, my point is that my rating truly reflects how people feel about my product - as it should. A 3.4 rating is currently preventing most people from even checking out the app, and I'm fine with that.