What are you thoughts?
Youkai Watch 2 is huge in Japan but we don't know how it could do in the west.
Digimon has already a little fanbase in the west and Digimon will get a new anime this year. 

I know DIgimon: Cyber Sleuth hasn't been announced for the west but I am sure it will happen soon...

Youkai Watch 2... Games that come from Japan on the 3DS tend to sell a lot. I feel it will develop a cult following here.

Having watched several episodes of the Youkai Watch anime, I'd definitely prefer Digimon. Youkai Watch is completely aimed at kids. Cyber Sleuth looks much more sophisticated and interesting.

Of course, Youkai Watch might hit it off with the Pokemon crowd but I'm not exactly convinced.

It depends. Both franchises have a merchandaising machine supporting the games. The thing is that Digimon would appeal to the young adult audience that watched the anime and played the original Digimon games, while YW would attract a younger audience, just like in Japan. I think Digimon would sell better in the West, the older audiences are more important nowadays in the handheld market in the West. Anyway I would buy the two if they arrive here.

Digimon rips off the mon so Youkai Watch 2, plus it sells better in JPN anyway.

Yokai Watch 2 will probably sell better, but I am much more interested in Digimon.

Youkai Watch will crush it. Firstly Digimon hasnt even been announced for localisation and secondly, nobody cares about Digimon anymore. Digimon is clearly the better game, hell its one of the best looking games in a long time but Youkai Watch will appeal to a large audience of young children watching the anime. I doubt Youkai Watch is the next Pokemon here in the west but it definitely does have potetial to do quite well for itself.

It could either be pretty even or possibly in Youkai Watch's favour ...

I'm not entirely convinced that it'll be able to get a whole lot of attention from the Pokemon crowd in the west since one of the biggest benefits about Pokemon is that it's culturally agnostic giving it the universal appeal it has. What the west are relatively big on from Japan are shounen jump comics and I doubt that group finds Youkai Watch all that enticing much like they think about Pokemon. Digimon isn't all that popular anymore in the west so I doubt it'll find a big audience in the end ...

Yokay Watch by a lot.

I wouldn't write it off so fast. YW has lots of little allusions and innuendos only adults understand.

But basically, yes, it's a children's anime.