Just a quick suggestion from me (Yes quick, I know I can write short topics!).
Rather than unrealistically shrink water and remove a strategic decision from the game that is interesting. How about add a strategic option?
Make it so DW can be turned back into H2O. This would mean that DW can actually be used as an intermediary step and the FP basically as a packing for convenient storage.
The DW is unpacked with a FP. Losing some in the process. So it’s not a 100% efficient process, there is of course time and setup cost involved with running the lines. I also could imagine some other resources need to be added to the water, LST? ALG?
I just think this would a better more interesting alternative to just decreasing H2O’s weight.