The money you spend on a new ATV with an Ethernet port will be tiny vs the value of your time and stress trying to fix wifi dropout issues. In my experience ATVs are quite stable over wifi, so my best guess is your older 1st gen’s WiFi adapter is sick. You could also try changing the 5G wifi channel in your router settings, in case a neighbor or another device is competing with it.

I know people who have bought the AW for show (“hedonistic reasons”), and they inevitably get bored and stop using it or change. IMO its primary purpose if for its features to integrate into your life. Exercise for me primarily (and yes, I’ve been much more regular/committed and fitter since owning them), but also maps, music, timers, weather, not needing to raise your phone every time a message arrives etc. Improved? Transformative.

Most likely Contact dermatitis. Not uncommon with watches particularly if worn 24/7. Harmless, not contagious. Try having a break wearing it at night or swapping wrists for a while. It will subside within 3-4 weeks.