Right you are, it doesnt look like water at all to me, more like a blue honeycone or something. It maybe caused by the big color differences you have, but Im not sure since Ive never tooken an insight to water-tiles really. But based on the things I see and know, this would be my opinion.
It looks more like a mesh, because it's too evenly shaped and spaced. Check here.
I think the grid is more visible in the lighter parts. Have you tried simply lowering the contrast?
Nice, Really does look like Dusty's though.
Have you tried animating it?
I'm still trying to figure out how these sort of water like reflections work. It seems more like the influence comes from the Japanese stuff, as thats where it's pretty common to see that ring like style.
This is a really nice attempt, it looks like you have a solid grasp on it.
{ Good job! Reminds me of this: http://www.pixeljoint.com/pixelart/56775.htm