From the walkthrough:

Repair-wise, we’re happy to see the fussy Force Touch gasket gone, and only two fragile cables tethering the display.

So Force Touch is gone, but the physical gasket goes with it, opens up just a bit of space.

Despite the almost imperceptibly thinner design, Apple packed in brand-new sensors in addition to the larger-capacity battery and beefier Taptic Engine.

Every new Apple Watch generation bringing stepwise refinement. This is far from a watch as the iPhone is from a phone. Apple really upping their game.