Interesting development, and it totally makes sense. I sold the LG Watch Style fairly recently, and it definitely wasn’t a premium product. Weirdly enough, Wear OS actually got worse over the years. I remember being much more impressed with the first Wear OS device, the LG G-Watch, and keeping it for a much longer period of time, compared with the Watch Style.
At this point, I think Google need to heavily utilise whatever tech and resources they got from buying Misfit/Fossil, launch something premium with way better hardware (reports have suggested that some of the new models with more RAM are performing much better), and really commit to it and consistently iterate.