The same can be said for anything high priced item. Why are Gucci still around when we can buy fakes. I mean who would spend $5k for a bag, but we do. Why would you want an Aston when Ford makes the RS Focus. There is always going to be a demand for high end items because we, as humans, love that feeling of being wealthy or high class. Rolex, Omega, whichever company you want, will find ways to make them harder and harder to rep.
I would be more afraid of the cell phone industry taking over the watch business because young people aren't buying, even middle class watches like Bulova, Seiko and so on anymore.