Kampfjaeger said:
How does the CWC Dive Watch stack up against a similarly priced Seiko?
Really, the only ~$500 Seiko diver that I'm aware of would be something like the Marine Master, which is a real-deal (very big) professional dive watch that I wouldn't consider suitable for everyday wear.
You can get a very nice Seiko 7s26 automatic diver in a variety of styles for around $200. These watches are well-made and reliable, and wholly suitabe for diving as most models are good to at least 200 meters. The only things that they have against them are that the movements are not hand winding and the bands aren't always that great. If you wear the watch regularly and are willing to consider an aftermarket strap or band, these aren't a problem.
I've never owned a CWC. It is my understanding that they are nice enough, but there are plenty of <$500 diver watches in the world using off-the-shelf ETA movements. In my mind, the business model where a company just assembles an outside movement into a different case is inherently unappealing and has been done to death over the last few years.
I don't see the CWC products as being anything special, and you are paying a premium for getting a "military issue" watch. Unless there is something irresistable to you about the styling of the CWC products, you could certainly get a product of comparable quality for considerably less. Ollech and Wajs comes to mind.
If the CWC style really does grab you like nothing else does, then great; go for it. If not, it would be worthwhile to look elsewhere.
Between the CWC and the Seiko, I would go with the Seiko hands down. The combination of the lower price and proprietary automatic movement offered by the Seiko divers is really unbeatable in this portion of the market.
I've never been impressed by the feel of the lower-end ETA movements. The Seikos feel much nicer when setting the time and date.