Ladies, and Gentlemen As I am no genius on this, I guess it was just by luck that i was able to figure this out. I also was one of you that jumped the gun and installed all the Beta OS. On my Applewatch, iPad, iPhone, OS X. But as Beta goes, they are all but too buggy for everyday use. So to the good stuff. I have highlighted the info below that will help solve this head ache!!
Pre-work: Make sure your iPhone that the watch is synced to and has the old back up is still running iOS 9. It will need to find the backup 1.0 Applewatch file
Step 1. Factory Restore Applewatch
Step 2. Sync Watch manually do not use the QR scanner as it only reads the 2.0 profile
Step 3. Restore from backup any previous 1.0 back up. 1.0.1 backups will not work as it was an OTA update
Step 4. Let watch do it's magic
And........wait for it, wait for it..... Repaired!! Back to WatchOS 1.0
Follow OTA update back to 1.0.1 and recover your backup file.
I suggest everyone remove iOS9 as well after the watch is fully restored.
Thank you.
Update: This does not work. Even though it takes the icloud back up of 1.0 it still shows watch on 2.0Beta? so frustrating!