As far as unread items in your watched list.
Not to sure about watched users. But with watched topics at least there is a indicator. If you have not browsed the forum first.
The unread item is not in bold. But there is a small graphic that shows. It kinda looks like a down arrow that is bent to the side.
On the left side column of the list.
Myself, I use watched items as a favorites/bookmark system. For topics that provide information I may need at a later date in time.
