The round-the-world sailor was eliminated on Sunday evening (May 27) along with professional dance partner Damien Samuel. She became the fifth celebrity to exit the show after Erin McNaught, Caine Eckstein, Vogue Williams and last week's eliminee Kerri-Anne Kennerley.
Singer-songwriter Shannon Noll was forced to drop out through injury earlier this month.
Watson told the Herald Sun: "I think I've done pretty well for someone that can't dance. It is a bit of a relief, to be honest. I probably shouldn't be saying that, but it is."
Her combined score of 40 for an individual salsa and a group cha cha cha with the other female contestants had left her at the bottom of the judges' leaderboard, with judges Todd McKenney and Josh Horner both expressing concern over her technique.
Packed to the Rafters actress Zoe Cramond topped the judges' leaderboard with a perfect score of 30 for her quickstep, combined with a total of 27 for the girls' group routine.
Dancing with the Stars Australia airs on Sunday evenings on the Seven Network.