The watch flag should be removed from the install command
The dev command should add a watcher for changes on theme files if they are local
The dev command should give a warning that changes cannot be watched on a theme repository if a URL was provided
setup files need to be handled by default; the flag should enable you to negate that option (however, the functionality will be implemented later in another ticket)
The following flag configuration should be final.
dev
command becomes the central command