Tommy,
I found your comments interesting. Tillinghast had a lot to say about water as a hazard:
“It is curious how water hazards, judiciously distributed to a reasonable extent, appeal to golfers.” Tilly wrote that in an article about water hazards for Golf Illustrated in February of 1919.
“Water hazards are popular and the builder of courses is glad enough to introduce them in his plans wherever he can…”
He writing about how a course committee would, "cast their eyes around in search of water. A natural lake is a gift of the gods, and any sort of running stream meets with approval. Sometimes this great desire for water hazards has influenced committees to such an extent, when several tracts of land were available, that the property upon which the water existed was selected in preference to another, which in every other respect was more suited to the game.”
He also wrote that when water hazards are established, they, “take care of themselves. There is no sand to be hauled and cared for. When the banks once are smoothed until they meet the water in a natural fashion, they only have to be trimmed up occasionally and the cost of upkeep consequently is very little… It makes pleasant breaks in the course and generally the beauty of the surroundings pleases the eye.”
Like all design features to a golf course, there are no absolute rules - just preferences.