@swandy I did another test this morning. I turned off the wifi and bluetooth on my iPhone (and didn't wear my Tilley had for the beach) and the performance was flawless. You wouldn't think wearing a big, floppy Tilley hat would muffle the bluetooth signal (when both sender and receiver are below the hat), but it obviously does!. Took the same path with the watch on the water side, controller on the land side. Performance was night and day.
This is the ONLY way I've found to use the bluebuds and the watch with no breaks in sound. The only other flawless (kinda) experience I get is the bluebuds and the iPhone, leaving the watch at home. But, then, you lose all of your fitness tracking. I say kinda as the iPhone was cutting out further south when I was near the water - but that could just be poor cell signal.
The tech I'm dealing with at JayBird now said that their little company really doesn't get a lot of help from Apple with instances such as this. Hmm. Think that has anything to do with Apple's Beats acquisition? (the FTC certainly wouldn't like to hear that).
Don't really have a mechanism to return them now...(Best Buy won't take them back once they're opened). I mean, they're functional, but it's a little annoying to have to disable the BT and wifi on my iPhone for them to work properly with the watch.