I don't think that this should be trying to compete head-on with existing smartwatches on styling. And for the purposes of a hackable device, a larger screen seems like a selling point. Also, the larger screen makes touchscreen features more usable.
Agreed with respect to size and the touchscreen which I do think is a great addition. I just think something that's more of a continuation of the Time series designs would be better fitting for a $200+ option. The Time 2 body which would have had the exact same screen would be fine by me.
I don't think that this should be trying to compete head-on with existing smartwatches on styling. And for the purposes of a hackable device, a larger screen seems like a selling point. Also, the larger screen makes touchscreen features more usable.