There are all kinds of problems that I can see in selling this device. It's big, chunky and not particularly attractive to look at or wear. It's functionality is limited and its compatibility restricted to the Galaxy Note 3, for now at least.
Then there's the price.
For all these reasons I can't see the Galaxy Gear being anything but a niche product.
What's more interesting is that Samsung are well known for iterating on their products at phenomenal rate. This being the case I'd expect to see a significantly more capable, usable and better looking Galaxy Gear 2 to be just around the corner.
This adaptability may just be what makes a Samsung smart watch a viable product.