Water actually looks pretty good, just the colour is wrong and the sun reflection. But unfortunetly I took a massive frame rate hit, down to about a 11 to 15fps slide show at altitude with the water animation on. Which must be something wrong as I can run FS9 and very high detail with max clouds and animated water as in the pics above and still stay over 20 fps.
I guess it's early days for the water effect and HT will soon bring out a fix/updates look forward to seeing how it develops.
Personally for the water I'd rather just see something more basic but better texturing as in the pics, with changes in the water colour close to land,reflections and a coastline.
For a flight sim clouds make a much bigger difference, though unfortunetly clouds like FS9 would probabably make a bigger frame rate hit then the water. Though FS9 has a modification where the distant clouds are drawn in 2D instead of 3D which means even on a meidium system you can run max clouds which looks incredible.
I can live with ground and water detail cranked right down, just give me real world weather effects. Every time you log on the map would be different just because of the days weather.

...-Gixer