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In part I suspect this is because websites aren't responsive down to smartwatch screen sizes yet. If any watch adds a browser, that process will start, and then it might become useful and something people want.
This article makes no sense. I would never expect a watch to run a web browser. Websites are not designed for such a small size, and I would never expect them to be. It's silly to think it makes sense for a watch.
Once upon a time, there was a strong movement/belief that everything belonged in the web browser and operating systems should be no more than a shell to load a web browser, and in fact the web browser should be the one and only tool anybody should ever use, no exceptions.

Your thinking and the article's point shows that attitudes have dramatically shifted.