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Haha, you hit the nail on the head! You're absolutely right, water allows you to leave large areas unoccupied without penalty, and that's why it deserves respect. In general, water is an indispensable part of the Heroes gameplay.
I completely agree. Water even makes things more interesting; just think about the very large Oceania map – it's my favorite map with water.
P.S. Although, water can really mess with the AI... with its unpredictable (unplanned for you) deployments... but that just adds excitement to the game.