Many blind people tell the time by feeling the machinery on their watches. This is simply a watch which is designed for that and I would imagine, less prone to the issues usually experienced: e.g. a blind person might have a watch with the face removed, and touch the hands in order to tell the time. The problem is the hands can move slightly, so it throws off the watch's accuracy.
That's right. The magnets that keep the balls in place are on the inside. You can move the balls and they will just roll back into place[0], eliminating the chance of setting the time.
A normal analog watch with a sturdier mechanism and stronger hands, that can be flipped open to feel the location of the hands is cheaper and smaller than anything with refreshable Braille cells.