In any event, Watson was polite citing my 'familiarity with the material' (or perhaps he was saying that I was not even at the start of 'my scholarly development') as the reason for my rejection:
Dear Mr Huller,
Thank you for your thoughts on Marcion and the Diatessaron. The PhD position is intended for someone at an early stage in their scholarly development, so, as you say, you would not be a suitable candidate – but I wish you well in your ongoing research.
Best wishes,
Francis Watson
In any event, I saw, I came, I was rejected. But at least now I know. That's the path to happiness. As Nietzsche says somewhere, happiness is a yes, a no and a straight line (quote?). The other bit of good news is that I have been receiving wonderful New Year's wishes from loyal readers of this blog. Really appreciate all the feedback.