Hurley was charged with assaulting a taxi driver in September last year and faced court earlier in March. The case was adjourned until June 11 but the Bombers imposed their own sanctions, suspending him for the first three matches of the season.
The suspension was recommended by Essendon's leadership group and was Watson's first major challenge as captain since taking over from Matthew Lloyd.
Watson says the Bombers were right to wait until six months after the alleged incident before dealing out their own punishment to the 19-year-old.
"I think that what we set out to do was get as much information as we could so we could make an informed decision. We felt we did that. I think, looking back if you had gone and made a decision early without knowing the full facts it would have been detrimental not only to Michael but the footy club as well," Watson told afl.com.au.
Hurley played 10 games last year at both ends of the ground and looks set for bigger things in 2010. But Watson said not playing the full 22 rounds could help him in the long-term.
"I think he showed last year how talented a player he is. But for a guy only coming in to his second year, it might not be such a bad thing to not have the whole season to try and get up. Often guys can get a lull in their form, just with the demands of it being different to underage footy," he said.
"I think he will come in, be fresh and ready to go and have a lot of training under his belt. The side will be looking forward to him coming in."
The Bombers have taken a hard line on off-field discipline over the past six months, as shown by trading Andrew Lovett to St Kilda. Lovett was quickly sacked by the Saints after he was charged with rape in February but Watson said the club had moved on from Lovett as soon as he was traded.
He said he was not certain if any Essendon players were still in contact with their former teammate.
"I'm not really sure if they do or not. He was close with a few guys but they don't talk about it if they do. I haven't spoken to him," he said.
"The guys were disappointed for everyone involved. Andrew was a player at another club and that's where we saw it."
