I think the cell phone will be the death of digital wristwatches ... and not of the mechanical watch. Is it just me, and I could be wrong here, but didn't the mechanical wristwatch resurgence really taken off since the advent of "smartphones"?
Bob, you asked if watches are only jewelry these days. Personally, I think it goes deeper than that. Today, in the cheap quartz age, people are inundated with "time". There's a clock on your phone, on the stove, on the computer, in your car, on the Stereo/DVD player ... time is EVERYWHERE!! But it's impersonal, soulless time. A mechanical watch is different physiologically: it beats like a heart, is complex, with many microscopic parts ... just like us: they have a soul. They are also a link back to when the displaying of time was less in your face; and more subtlety on your wrist: a time when we weren't ruled by time ... and people are gravitating back to them for many of these reasons. Hence the value of vintage pieces becoming more desirable.
Also, chatting to friends and workmates, I've noticed that a lot of people are getting sick and tried of our throw-away society, where nothing is valued; or of value, anymore. Where everything has designed obsolescence: purposely made to fail, and engineered not to be repaired or serviced. This is not the case with a good quality mechanical watch; as they are purposely designed, with minimal maintenance, to last several lifetimes. And that has great meaning to people these days.
A mechanical watch is jewelry, art, a status symbol, and a wonder of movement and engineering that you can wear on wrist: and like my old Flightmaster that I've worn for 16 years, they become a part of you that will be passed on to the next generation.
... steps off the soapbox :fpc: