Aesthetically, what does this stitching add?

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Indeed they did - I have one from Omega on my SM120:



I like it, personally, but everyone's tastes are different.
I do as well. I think that it looks particularly nice on suede straps.
 
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Not a fan of the stitch. To my eye, it does not fit with any of the watches in my collection. They remind me of a belt or shoes I might wear with jeans.