I’d drop the projector interface, as cool as it is, since you have a phone for that. Maybe make it a pendant as well as a pin.
Apple’s got a lot of experience with using tiny speakers in loud places, so I bet they could figure out something maybe using directional microphones. Plus, again, you’ve got the phone so you can use the headphones.
If you drop the projector, then airpods already do it better when paired with the watch. There’s no point in such a device at all, then.
Airpods don’t have a camera though. 90% of my photos are of things I need to remember, like a shopping list or a specific product I need to get Having to dig out (or find) my phone to do that is a pain.
And I don’t have Airpods because I’d lose them, one by one, and the replacements are twice the price as another pair of perfectly workable Bluetooth headphones.
If they wanted to companies could put a camera in a smart watch easily. Samsung was doing it ages ago.