I am sorry to say you haven't assuaged my scepticism.
The watch in question made in 1989 is valued at 6 million dollars (according to wikipedia). OK fine, that might be an extreme example. Lets take a typical Patek watch which costs tens of thousands of dollars.
I can't believe that the price reflects the materials, the complexity and labour that went into the watch. I admit i know next to nothing about horology but as a software engineer i have trouble believing it has more complexity than a similarly priced family saloon or even a mobile phone, or a microprocessor.
My point with the Chinese sweatshop example was its really about the image that they want to be associated with. There seems to be a typical formula: An aristocratic sounding family name of the founder, a founding date sometime in the 1800s and a founding place in Geneva or some town or village with a quaint name in France. A making-off video which features men with Germanic features, wire-frame glasses and who is never smiling(we're portraying gravitas here), delicately assembling the watch components. Oh yeah and make sure you get celebrities, powerful politiciansand pro athletes to be photographed wearing the watch (the fact that some of these people couldn't reasonably afford such watches seems to suggest they were given the watch for free or even paid to wear them).
edit: I know there are examples of watch manufacturers like Richard Mille who break the mould (at least with the historical legacy aspect), but it seems to be an unclear path to convince the gatekeepers of this clique that you're not just another poser trying to pry hundreds of thousands of dollars from the wealthy.