Now this is a topic I like!
Scratch resistant, strength, and impact resistance are very different things.
Scratch resistance is best assessed by the Mohrs harness number (note the term 'hardness') and sapphire at 9 is indeed only surpassed by diamond at 10. It's matched by quite a few other materials though, some of which can be 9 and a bit. Tungsten carbide for example that machine tool bits are made from.
Strength is a measure of how much force is required to break something. From memory, sapphire is about 2 GPa in compression and 0.6 GPa in tension. It's like concrete in that it's stronger in compression than tension. Take a thin piece of sapphire, such as a watch glass, and push on the centre and the stresses in it become compressive on the side of your thumb and tensile on the opposite face. Thin piece of sapphire, hard push with a thumb and it'll snap. Don't try though because it's damned sharp when it has snapped.
Impact resistance is a measure of how much energy the material can absorb before it fractures. A really unfortunate fact about materials is that as hardness (Mohrs number) goes up, impact resistance comes down. This is best shown in the carbon content of steels, where low carbon steels can deform a lot and absorb a lot of energy before they fracture, but higher strength high carbon steels can't deflect as much and so can't take as much impact energy.
So, in watch terms, sapphire is more scratch resistant than chemical glass, stronger, but less able to take impacts. Just ask the number of watch owners who've shattered a sapphire crystal by knocking it on a door frame or dropping their watch onto a tiled floor. Also, and very handy with watches, sapphire is much more transparent than glass and has a lower refractive index. This basically means it's easier to see through and particularly good if you look through it at an angle rather than face on.
There are ways to limit the weaknesses of sapphire in watch glasses, but they're all in the design and manufacturing stage and need a bit of engineering knowledge, which some watch companies don''t really possess.