Well firstly, they don't charge $200 for them because they can't produce them for $200. But the point I'm making is he seems to be trying to say they aren't beautiful. He says he's describing this "dark" world or "strange" watches. I do actually think he probably thinks the watches look strange. I don't think he thinks they're beautiful, maybe he'll find a brand to fall in love with one day. I doubt it because he seems to have too much of himself invested in this. But the people buying them don't think they're strange, they think they're beautiful. I don't go out telling everyone that they shouldn't buy a Ferrari because my Honda Civic can do the same job.
You're confusing the price of something with how much it costs to make it. Prices are just a made up number. Hopefully, the amount someone will pay you for the watch you made is more than it costs you to make it, and you have a sustainable business, but the funny thing about capitalism is that is not at all guaranteed. If the company wants to juice sales, they'll have a limited time discount. Or how about when the company is bankrupt and out of business? Then theres a fire sale and the price of something is pennies on the dollar. So they could sell the watches for $200, or they could give them away for free, or they can charge $100k, or they could barter for them. It's all a matter of business.
I think you are missing his point - the items are desireable because of the brand. The stories, the movie stars, the songs and so on.
They don’t possess a universal, objectively valuable beauty that motivates the desire. If they did, fakes would be equally desireable and they are not.
I have a set of very expensive hand made japanese irons (golf clubs). I assure you I did not buy them from social influence or clout. In fact, nobody ever really sees them except me. I bought them because the craftsmanship and how truly beautiful they are. They make me smile.