Earlier quoted context omitted.
There's so much more to a smart watch than a fully-customizable watch face. While I fully believe that Apple should open up to third-party faces, I am quite content with the customization options that they offer now.
There may be more, but it includes that functionality at the very least. That would be the absolute base line functionality of a watch that has a bit-mapped display.
As for the reasons why they don't, my speculation is the following (I'm not defending them): They are worried about custom watch faces that might perform poorly or draw too much battery. Watch is a challenging platform to develop for as watchOS is very protective of its resources and won't hesitate to kill your app. But Apple probably doesn't want to kill the watch face and at the same time doesn't trust the developers to develop their watch faces to Apple's standard.