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Update: After revisiting some of my older mods I realized I had originally built this before Shivering Isles, before the new terrain blender, back when setting uGridsToLoad to 11 was the only way to get decent LOD on distant terrain. Of course that obsolete method had several flaws, including causing water to be overly transparent, which I had incorporated into my original calculations for the water appearance.

This new version, complete with corrections for Shivering Isles water as well, is IMO better than the original. As you can see from the screenshots, the new underwater modifications remained similar, perhaps a little less bright and with slightly less visibility, so closer to the original while still maintaining my goal of being able to see better underwater since mods like Alive Waters add so much to the game.

From the surface the new changes are more subtle, but definitely noticeable. The overall appearance is slightly less bright and "foggy" looking. Also, the main difference is that you can see below the surface appropriate to the distance you are viewing from, so closer underwater features will begin to appear while things further away won't jump out as with the original, instead fading out to reflection and fresnel effects more realistically.

The end result is about as close to real water as I've been able to get with the default settings and textures. I have left the old version up for posterity, however I highly recommend giving the new version a spin.