I actually find that it works great. What happens is, if you use the wake up gesture just to look at your watch at a glance, then it will time out after 5 seconds because it assumes you just want to check the time quickly. However, if you interact with the watch in any way (pushing buttons, menus, etc.), then the screen timeout is activated for 10, 15, 30 seconds or whatever you have it set to.
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