Agree, Watson doesn't analyzes fully the position...only a short note about transposition in analytical section and I believe the position is not in the main lines, because White plays Nb3 and the system with Bb5.
Watson refers to McDonald's analysis here on chesspublishing. Not being a gold-member I have only recorded: Malakhov-Zhang Zong,Ergun 2006 (chesspublishing july 2006) after 8.Bb5
For first moves, I have good alternatives for White/Black. Psakhis wrote (in "French Nd2") that Black can play a5 at move 3. And in fact you can find the excentric move a5 (instead of Guimard Nc6) in Sjugirov-Nepomniaschchy,Russia 2006
After 9.Bd3 I prefer the main plan for Black: 9...b6 (to play bxc5 after a next c5) 10.oo (10.Bd2 to attack a5 and force Black to take with a bishop/knight after a future c5, see update July 2006).
10.oo (10.c4 Bb4+ =)
h6! my suggestion.
I agree with M.Ayton 10..oo!? but I have a mix feeling for Black and somewhat passive play if WHite doesn't engineer the pawn break b3, but manages a kingside attack. 11.c3 c5 12.Bb1 c4 (12...Ba6 13.Qc2 g6 14.Re1 Rc8 15.Bh6 Re8 16.Qd2 (plan is top put pieces on black color squares h4,Qf4) Nc6 17.Qf4 +=) 13.Nbd2 f6 14.Re1 fxe5 (14...Nc6?! 15.exf6 Nxf6 - 15...Rxf6? 16.Bxh7+! Kxh7 17.Ng5+ and Nxe6 - 16.Qc2) 15.Nxe5 Nxe5 16.Rxe5 Bd6 17.Qh5 (to forbid Qh4) h6 (17..g6? 18.Bxg6) 18.Re2 Qf6 19.Nf3 += and I prefer White
h6 is suggested because I am reading Watson Dangerous weapons and the move is in the spirit of the book. To be honest, this move is part of many plans in French defence, and a good brother move to b6. Main advantages is Black has flexible plans and h6 is not such a weakness on the kingside. White mus be careful because if he plays the pawn break c4 then Black can take the c4 pawn and play Bb7, castle and has a very good position.