Quite frankly, I don't see a problem with the water in this game. From the air it looks just fine. Again, there is an issue of visual range. In SH the water is nice, but I noticed in their videos that the waves start to repeat and form a "quilt" pattern after less than a mile. This is fine if the camera is at the surface, which is 99% of the time in SH.
A flight sim has to render water waves which should not have a visible pattern for maybe 10 miles at least. So, in the same way that ground textures will not appear in a flight sim the way they do in a FPS, so too will the water.
The visual representation of the shaking is maybe much. As has been said, there is a dampening effect because of our biology. It should be felt, not seen, but that is impossible to do for a computer game.
My suggestion, would be to have shaking of loose items (like the canopy pull handle) while dampening the camera vibrations.
Save for the vibrations, I would say the movement of the head was very realistic. There's obviously compression into the seat from G's and it goes side to side while making hard banks. Very nice.
However, I noticed a bug with your gunsight. It seems to show a hard horizon and brown color above.
I would imagine that because of this the gunsight is more than just a texture. So, will it be refracting light?
The clouds look good. I would like to know of there will be a greater variety of shapes besides the "cotton balls" that show up after a rainy day. Will there be changes in thickness (up and down)? Will there be a possibility of seeing a towering cumulonimbus maturing into the anvil shape? Will there be multiple layers? Will high altitude clouds also change, or are they bound with the map as in Il-2?