Oh they definitely sold them at retail and I remember buyers posting about getting one here.
I think a lot of people assumed at the time that the guts would be upgradable as the tech improved, but turns out it was definitely not designed that way.
In the end I'd expect people who dropped $17k on a first-gen Apple Watch to have money to burn, so as long as they got a couple of years out of showing it off as an elite status symbol, then putting it in their collection, I'm sure they'll be just fine.