Luxury items have a culture and have a crowd that appreciate them for their sophistication (ie craftsmanship, history, whatever). But for the most part, these items are typically appreciated by wealthy people to the point that wealth is identified with luxury goods (not mention these goods are typically too expensive). So when people typically come up with sudden wealth, they typically try to identify themselves as wealthy by flaunting luxury goods. It's an unfortunate outcome that not only effects watches, but also jewelry, automobiles, homes, alcohol, etc...
Conversely, I know a few wealthy individuals who gradually became wealthy through hard work and their Walmart wardrobe and Toyota Camry (no offense intended) doesn't do anything to expose it. But I'm guessing they don't feel the need to identify their wealth because they gradually came upon it to the point that some of them don't even feel wealthy.
But especially in sports and show biz, there's a need to flaunt wealth because of the image oriented and superficial nature of the business.
In other words, it's a self perpetuating cycle that will never end.
So for us enthusiasts, we just have to accept it and not let the flaunters ruin it for us.