Well prior to 1993, Panerai was making watches for the military, total of 300 odd watches? Between 1993 to 1997, consider the lost years, midst of bankruptcy and being purchased by vendome. 1997, trial year, acceptability of a 44 mm watch by the general public.
Why 2005? Perhaps it is time to move up the food chain? Time for it to be a manufacture? Already got the funds? Got the factory? Who knows?
The basic thing is, we have to decide what do you mean fashion brand? Successful marketing? Strap change? Poor movement quality? Ok, one mistake, bad one at that with the pam318. At least they offered to change the movement? Would other companies have done the same? Who know? Did Rolex do the same which the faded explorer II white dial that because yellow? Did they offer to change the dials that cracked in the submariner? I don't know if they did.
So to say that Panerai is a fashion brand because of their success in milking he public in general, I say no, just good if not great marketing.
To me a fashion brand is one that gets someone else to make their watches, like Hugo boss or nautica or Adidas. A company that makes its own movement, regardless good or bad, it's own cases, have a design team, factory, and even makes and design for other brands, Ferrari and even montblanc can't be a fashion brand. It may not be the best at making watches, but it is for sure not a fashion brand.
At least it tries. New movements, new complication, new cases, new materials, etc. successful or not, at least it tries. You have to give it that. At least it does not sit on past glories, contented and continue to curn out the same thing over and over again, good or great as it may be. That to me is a sign of a true and great watchmaker. Take the risk, try something new, explore, go where no man has gone before. How many watch companies are doing that now? Yes it helps that you have the support of the parent company, deep pockets, strong (cult) customer base and able to milk it for what it is worth. That is no crime. That is good marketing.
So is Panerai a fashion brand? Nope, far from it.