I reckon they survive as there will always be people who prefer a mechanical watch to a smartwatch, don't want or need constant notifications - they're a sure sign of someone who doesn't really care about watches as such.
Smartwatches had a bit of an auspicious start in the market, with not much uptake by the public, despite) being mooted for years) with their limited specs, battery life and applications, although recently they've got a whole lot better.
I was a relatively early adopter with an original moto360, it was pretty useless other than a novelty factor, plus, how long does a smartwatch last before it's obsolete, the battery goes, or if it's Apple, the next generation comes out?
As for younger generations, I agree with you, where I am there is a national skills shortage in traditional trades, not as many youngsters are keen to follow trades in construction, automotive etc, we're fast becoming a population who can't do anything for itself, very few will appreciate the mechanical aspect of luxury watches.
Sorry, but can't imagine you're going to get many recommendations on which smartwatch to buy on here.