You can also opt to reply with an emoji or a voice message.
You can't reply with a voice message, you can dictate a text reply (i.e. speech-to-text).
You cannot reply to any notifications from the watch.
I can also do this with my Pebble, so perhaps this is Android only.
You can't filter smartphone notifications to the watch—it will vibrate and light up with every alert that the phone receives.
I can also do this...
Perhaps you should try it with Android before completing a review like this? All three of these are factually incorrect without making an assumption about the user's phone.