Seems like there's still the issue of networking, and I guess if the accusations about the Spotify app rejections are true then I wouldn't be surprised if a Watch app that allows offline playback would get rejected.
> Seems like there's still the issue of networking
Yes, but I would guess that limitation is done for some "legitimate" technical reason. Streaming Apple Music on the watch just kills the battery life in my experience, and it seems pretty on par with Apple's M-O of limiting expensive hardware access to third parties (like multitasking back in the days). But who knows, could perhaps be out of some evil anti-spotify spite.
> I wouldn't be surprised if a Watch app that allows offline playback would get rejected.