Everything so far points to Samsung scaling back its wearables line, and therefore scrapping the larger watches sporting physical interfaces would not be surprising at all. Realistically Apple is so far ahead in the smartwatch space and Android-centric implementations have been so lackluster to date that it's hard to see them making any sort of a decent comeback. If Apple ever decides to allow the Watch to work with Android the entire wearables sector is Apple's. This is likely very unlikely but still points to the sad state that is Android wearables space. (Mind you I know that Samsung watches are Tizen based - I've had them for a while, but they nevertheless target Android primarily.) Overall, I don't see much future for Samsung Wear devices. They will stay around for sure, but they will not be prominently featured any more as they were when the S2 and S3 series launched.
I think Galaxy watch will stick around. Samsung invested a lot already so it isn't expensive to make newer versions. Only issue is if some new pebble like watch shows up that works really well with Android will Samsung have a challenge.
It's true Apple watch is ahead but only 16 hours battery which is why I like tizen watches.