I will be the annoying squeaky wheel with the same caveat that I understand things are being looked at and intentionally adjusted as time goes on and I'm having an absolute blast and everything you guys have done is stellar.
There's a weird paradigm where you get tons of water from max 5 and even some max 6 quests - there are quests that even guarantee a well, to say nothing of the salvage placeables and random loot drops. This is so much the case that by the time I was level 6 (before many quests were adjusted to be max 6), I had a page and a half of small and medium waters.
I am now hovering around level 7 and have... almost none, and have watched many people desperately go to lower level PCs in the Krak and barter coins for waters.
This seems to be the largest bottleneck for questing right now, particularly for groups who are doing content for the first time as things are being adjusted.
I think having more access to small and medium waters is overall better for the questing environment. Being able to liberally use waters makes questing less insular - otherwise people are only going to be inclined to give their waters to people they know will heal them now and in the future. Further, without the use of an ash refinery equivalent, you are limited in how much weight you can carry, space you have in your inventory, and the fact that you can only use one per round of combat. And even if this does become an issue down the line, I think adding a "waterskin" aspect to the backpack would easily solve any bloat issues in this regard.