"Without the app we won't be able to text back and forth, see where they are, or add new contacts (the watch blocks calls except to/from contacts)." "Our older two kids, Lily and Anna, are ten and eight, and are mature enough that they're able to cross streets and handle unusual situations. They can go to the park or a nearby friends house on their own, but we do need to know where they are" "Meet Gizmo Watch 3, the…
Seems like you are getting caught up on the watch form-factor. If you think of it as a stripped down cell phone for a kid you don't want to have a cell phone yet, this product makes perfect sense.
I'm getting caught up by the full fledged surveillance kit. Give them some independence and freedom instead of this a watch with an SOS button, we survived before ~2010