That's like asking why a human contestant failed to come up with a new algorithm on the fly.
I disagree. A human contestant who failed to come up with a new algorithm was perhaps not smart enough, but is still able to engage in the same kind of flexible thinking under less challenging circumstances. I suspect Watson cannot do so under any circumstances.
I mean, Watson did beat actual humans, so clearly they managed something fairly robust.
Without it's super-human buzzer speed, I doubt Watson would have won.
I believe that the way things were designed, Ken Jennings was probably at least as good as Watson on buzzer speed. Watson presses the buzzer with a mechanical mechanism, to give it a latency similar to a finger; and Watson doesn't start going for the buzzer until it sees the 'buzzer unlocked' signal. By contrast, Ken Jennings has said that he starts pressing the buzzer before the signal, relying on his intuitive sense of the typical delay between the completion of a question and the buzzer-unlock signal.
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