Water=3 was always about using a nVidia specific feature that was not officially part of the standard pixel shader specification. Water=2 was added later so that any card could use it. I use Water=2 on my system despite having a nVidia card because it looks just as good as Water=3 (Water=4 has the whitecaps) and runs quite a bit faster.
Storm of War will almost certainly be totally different... DX9, 10 and 11 support. I would guess that going DX will help ATI quite a bit...
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