The fact that I don't have to quit what I'm doing, I just glance over to check the time. I also love chronograph watches when I'm exercising. Watches that also have a stop watch. It's on my wrist and not on my waist band or wherever I can tuck my cell phone.
My husband bought my watch for me as a present. He especially picked it out for me. It's jewelry and means a lot to me. It's a fashion statement and special ;) I can't say that about my phone.
I really don't think watches with go completely out of style. I think the kids will just have to mature to appreciate watches. My daughters who are younger love their watches. I know that may change when they are teenagers but I believe they will go back to it.