It ain't vaporware until it's been announced and doesn't show up on schedule. THEN it's vaporware.
Apple hasn't announced an AW2 or said word one. Sure there'll be one, eventually. I doubt that there will ever be a yearly hardware update for it, as there are for the phone and computers. Even the iPhone is mature enough it's not easy to bring a WOW version to market. Everybody seems to want to be the first to say "Meh, evolutionary not revolutionary" as though Apple owes them a spectacular new bit of tech kit on a regular basis.
LTE on the Watch doesn't impress me. I don't need two data or phone plans. It's inevitable but I think it's early days unless there's a big battery breakthrough or Apple drops OLED displays (which I doubt). Really active people barely make it through the day, at least with the 38mm Watch. A lot of us light users have no problem.
So GPS, LTE, a camera, blah blah... They can wait as far as I'm concerned. I get that runners and others have valid uses for at least GPS and LTE but until battery life can handle those, I'm in no hurry.
If the rumored 334 mAh battery is real, I'd hope any included hardware upgrades don't cost any of the current run time. In the past Apple has offered suggestions on how to get more battery time out of iPhones by shutting off various features. But then you have to remember to turn stuff back on when you need it. A very inelegant solution. The same advice was offered early on for the Watch, but then- why have it? Some people can turn off a lot of features and never miss them. For others those very features are why they wanted it.
Apple is probably ten steps ahead of everybody in R&D doing things we never even thought of. If they believe it will make a better product we'll see it. We may or may not agree with them. I can wait.