This whole thread is chockful of thought-terminating cliches, and I say that as someone who grew from a waiter to a developer thanks to Apple and made a lot of these arguments.
I also worked on Android Wear's iOS app for working with iPhones.
The major problem I see now with these excuses, that I'd like to claim wasn't an issue when I was making them circa 2015-2017, is they're cargo cult (a la Apple likes making things that just work) or boogeymen (if they did anything different, a bluetooth connection would be used, unencrypted, sending all your data into the ether).
The watch has been out for 10 years.
Software is software. Where there's a will, there's a way.
It's very, very, very, hard to believe there's 0 way for Apple to ensure an encrypted connection.
Put another way, avoiding the global observations: If it's impossible, why allow watches to be paired at all?