Apple can afford to improve and cheapify this thing for a decade.
It has incrementally improved, and gotten cheaper, to the point that I now see them everywhere. When they first came out, they were pretty expensive. Remember the $17,000 gold Watch (which is now obsolete)? The ceramic ones were over a couple of grand.
But the dream of selling Watch apps seems to have died. I think most folks just use the built-in apps.
I think the current rumor is that development of a cheaper XR headset has been shelved in favor of working on something to compete with Meta's AI glasses.