If you get your watch back consider yourself lucky. I would not spend any $$$ on a filing fee or an attorney to sue for a watch that was was returned to you.
Sueing this person for lost time, travel time, etc. is likely not worth the effort. Sounds like you will get your watch back though. You do not need to drop the charges in order to avoid the costs mentioned above. If the State prosecutes and you are a needed witness, it is the State that will bear those costs.