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The Series 3 has a much slower CPU. As in slower than it needs to be run the UI. The "SE" is a Series 5 (CPU wise) and much better value.
If you're not expecting the giftee to interact with it very much (i.e. just use notifications and Apple Pay) it might be ok.
New Apple stuff is rarely sold for less than RRP.
Various different Apple watches, is there any reason to go above the series 3 if you're not looking at cellular? Aside from the different hardware, what are the benefits of the more expensive ones (or is it all just hardware features that differentiate them)?
Do they tend to be on sale (given I'm looking at getting one for a christmas present) anywhere or just at the Apple price?
Cheers