And these smartwatches tether to and control the phablets?
For things like texting and managing a music library yes.
So you can be on your treadmill (with your giant music library organised into dozens or hundreds of play lists on your phablet or even a tablet) and control what music is sent to your Bluetooth headset from the phablet.
If a text message comes in you can see it without stopping.
A smartwatch isn’t something everyone needs, but then neither is a multimeter or a laser level. The people who do need them will probably use the heck out of them.
Of course, some of the Apple models are intended to be jewelry as much as anything else.