Guru Sahib has blessed His Gursikhs with Sarblohi Karas and Simrane to wear on both hands. Where would there be room for watches? If one has to wear a watch for whatever reason that would be fine but when doing sewa like Langar sewa, Kirtan sewa etc., it is not appropriate to wear a watch. For Langar sewa or Degh sewa or Siri Akhand Paath Raul sewa, it is totally inappropriate to wear it since one has to wear everything sucha (clean) for this sewa and it is not possible to do sudhaayee of a watch. Same way, I have not ever seen Punj Pyare wearing one.
In today's day and society, there is no need to wear a watch for time since time is available everywhere we go. Our cell phones have time, our computers have time, our cars show time and where ever we go, the current time is available. Some Gursikhs wear the watch as a fashion statement and this should certainly be avoided.
The above is based on a Gurmata that Toronto Singhs did many years ago and this Daas is a humble follower of this Gurmata. Rest I don't know.