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... This is nothing more than speculation, they don't have an Apple Watch yet. This is just link bait.
Interesting article - would love to see more information on AEC tradeoffs - what proximity between mics and speakers can you achieve before the cost in audio quality / performance is too high? There's always the risk of feedback (take a hearing aid for example) The Walkie Talkie type approach, while cumbersome, may be the best served for this application aka press a button to speak.
From what I've seen, if you can get 20dB of isolation mechanically between the speaker and mic, you'll be good. The AEC can generally take care of the rest.