You complain about wanting an Apple Watch now but evidently didn't think of getting one last week when Apple announced the deadline?
The very definition of short-sightedness would be to simply cave and agreeing to pay Masimo licensing fees for posterity. I really don't see the issue you are having with Apple opting to explore all possible alternatives first. Knowing Apple, they would have stockpiled a fair supply of Apple Watches prior to the import ban, plus the announcement last week should have pulled forward a decent amount of demand.
In the near term, sales of the Apple Watch will continue to do just fine. How it plays out next quarter, well, I guess that's just additional fodder for Macrumours reporting and the comments section in general.