TBF Jock, I am in the opposite camp to you.
I thought the performance level from us was decent and we did try to get the passing game going. The first ten to fifteen minutes we succeeded and looked good, and this is where we differ, you say we went defensive, I would say that Watford got their act together and pressed high forcing us to go long as we don't have the quality to break the press.
For me this was a game of quality vs triers, the latter being what we are, whereas Watford still have a lot of PL quality in their side. This was evident in the way they played around us using one touch football to create space and stretched the play with wide players who were always available to receive the ball when we put them under pressure.
With the players we have we have to play at our best every game, and even then, we are not guaranteed a win when we come up against quality players. We all knew this was going to be a tough season and so it is proving to be. I still believe we have the ability to win games through sheer effort and togetherness and that we will survive, but we need to be picking up points against the teams around us, and so the Stoke game on Wednesday becomes an important game as they are only above us on goal difference.