Having read everything here a couple of times, just to make sure I don't miss anything, the core of this seems to be:
1 - None of us have a problem with a watch improved using period correct, and reference correct parts, as long as it's disclosed.
2 - All of us have a problem with a vendor (no matter who they are), listing/promoting/selling a watch as "Original" when they are either fully aware that it is not "original", or there are enough alarm bells ringing to call it into question.
In this case, it feels very much like the auction house could have chose to exclude the word "original" and there wouldn't be this much heat... it almost feels like they either chose to misrepresent the watch on purpose to drive the price, or didn't do enough research and perhaps trusted people they might have had a vested interest in the sale.
I've not evidence of the above, but often if it looks like a duck, walks like a duck, and quacks like a duck, it's a duck.
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