The more I think about your test, the more I realize that it actually shows that the watch is doing something right. The whole point of using the Workout app is to tell it when you're being more active than usual, and there is an eliptical workout, which is optimized for that kind of activity.
This said, the problem is that you may be doing other activity during the day - and a lot of it - that doesn't get counted. Back in the day, when I lived in New York, I would walk a lot, and I walk "briskly" in general. So if I were to not set the workout for a walk, the calorie count would be far below what it should be. I think it's hard to get this right, to fit every use case. I think they should do better, but I wouldn't say your test is the best example.
What would be a good test is this: do a 30-minute walk on a treadmill, using two watches, one set to the Indoor Walk workout, the other to the Other workout. (You could also do a second test, with one set to Indoor Walk, and the other not set to workout at all.) I'd be interested in seeing how much of a difference there is. In my experience, doing both, it looks like the watch counts about twice as many calories when you use the Other workout as the Indoor Walk workout (this is based on the same walk, at the same pace, on different days). That's just wrong.