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The reason that IWC is not going for JLC is Richemont policy, for sure. IWC has for the sake of separation a more germanic (as Foo says) approach, with a more geometric design and a feel that is closer to instruments and utilization than JLCs haute horologerie approach and elegant design. Of course there are models that are cannibalizing a little (like the Port and the MC Diving) but they are separating themselves by some variables (the Port being bigger, the MC Diving far more exensive...).
/M
Again, I am well aware of IWC's history as a Schaffhausen-based brand and their Germanic-heritage (they did, after all, help in the revival of A. Lange). Thus, their styling should certainly be different from the more expressive JLC.
My point was that all their recent pieces seem to have bolder / gaudier "look-at-me" designs and larger-and-larger sporty cases.