Watson can answer only questions asking for an objectively knowable fact. It cannot produce an answer that requires judgment. It cannot offer a new, unique answer to questions. All it will do is look for source material in its database that appears to have addressed those issues and then collate and compose a string of text that seems to be a statistically likely answer. Neither Watson nor Wolfram Alpha, in other words, comes close to replicating human wisdom.
But it's a machine that makes one hell of a Jeopardy player. That's some crazy-fast natural language parsing and database lookup.