I don't think this really competes with a phone. If anything it competes with a smartwatch. And as far as wearable tech, a watch blends in much better.
And a smartwatch offers a lot of health features, too! Something many people seem to find interesting and useful.
The watch is an accessory to the phone that adds features plus offers convenience and if you want to, it can temporarily substitute your phone like when you go to the gym. A cellular Apple Watch combined with Air Pods can do a lot. And both the Apple Watch and the Air Pods have use cases in addition to that in other situations. I don't see that here at all. I see a device with a very limited feature set.
