I doubt Moto is doing anything. This watch is ~2+ years old, Which is an eternity in todays disposable electronic industry.
They are done making whatever $$ they can off it. AFIAK they are not releasing a replacement or new model. Theres no reason to put any effort into product brand promotion, or reputation. So they will just let it die a slow death. The wearable market (or any negativity from it at this point) is not nearly big enough to hurt their reputation. They know this already.