Yep! And one issue Apple will have to deal with is: if people routinely leave their phones at home, will they pay $600+ for new phones every 2 years? My guess is that Apple will not be too eager for that scenario...
Apple isn't dumb enough to think they have a choice. When Android finally figures out watches as well as Apple, a hundred watch makers will start chipping away at the phone market. Apple has always been smart enough to try to cannabilize its own products if cannibalization was inevitable.
What do you think the ETA is on a good, LTE-enabled Android watch? I feel like nothing out now is as good as the original Apple Watch, and it took them 2 more years to get the LTE stuff worked in there (and even then, the battery life isn't as good as Series 2).
And to be clear, I'm not a fanboy who sees the Apple Watch as the gold standard — I don't have one and probably won't purchase the Series 3.