The bezel (and the LG G watch R - referred to LG-GR from now on - has a massive useless bezel) is completely decorative and that is where LG is hiding their display drivers, which in turn makes for a very tiny screen (1.3" on the LG-GR vs. 1.56" on the moto 360). Moto 360 on the other hand has no bezel whatsoever, and instead has the flat tire (you have to hide the display drivers somewhere after all). Between the two I 100% prefer the bigger screen and NO bezel of the moto 360, which also makes for a much easier swiping. No question about it. 1.3" screen on the LG-GR is too freaking small and the bezel gets in the way of swiping. And if they had gone for a 1.56" screen, with the massive ugly useless bezel, would have made the watch humongous.
On the question about the ambient sensor, if LG had put an ambient sensor on the bezel, then the bezel would have been many times uglier than it already is with a empty black spot. Make no mistake about it. I very much doubt LG wanted the bezel. But they had to hide the display drivers somewhere. IMO, given the limitations, I think moto 360 made all the right choices with no bezel, bigger screen and the flat tire. Don't get me wrong. Motorola should have put a Qualcomm 400 in there and a OLED screen. But as far as the physical dynamics of the moto 360, it is perfect. I think the 2nd generation moto 360 is going to be a killer one. Qualcomm 400 or higher, better battery, sapphire screen, NFC, GPS, barometer, a few more sensors. Yes, I want it all.