Hi -
Of course they're not functional. There was a time in the late 1950s when a couple of companies went waaaay overboard: if I remember correctly, there was a 99 jewel Bulova.
In this particular watch, there are 40 superflous jewels on the periphery. Now, the only real reason for these there would have been to provide a very nice jeweled bed for the edge of the automatic rotor, but this is not the case at all: pure marketing hype.
By the way, I've bought from that vendor before (I know those pictures!) and he's basically good: the watches are taken apart and properly taken care of before selling them on eBay, but I've got one at least which has a problem with isochronism (i.e. being somewhat variable in its timekeeping properties), which while not his fault per se (he doesn't advertise them as keeping accurate time!), still is a risk. But it's also a risk with any vintage watch as long as the seller doesn't document how the watch is keeping time...
It's a horological curiosity, and I've put low bids on either this one or another like it just to see if I could get it as a curiosity: however, there are people out there more curious than I am (my "curiosity" bid lies around $30 or so: that's the price I'd be willing to pay (w/p&h) to actually see something like that and have it to play around with...once.
Happy new year, Tom, and may the force always be controlled by the escapement!
JohnF