Originally Posted by
tcuprof Original OS: the contact list is so important that we devote one of the watch's two buttons to accessing it
OS3: the contact list is so unimportant that there isn't even an app for it on the watch
I think it was a matter of Apple trying to figure out just how the masses would use the Watch. I think far, far more complaints were made about the single function of the button than the loss of Favorites. There's also the question of how many people would really need a Favorites app when making a call from the Watch wouldn't be the most common use, at least after the novelty wore off.
And while the loss of Favorites is lamentable, I think Apple made much better use of that button. Favorites could easily make a comeback and the Dock is a good place for it. And we still have Siri.