Thanks for the kind words.
You see, I put question marks in both my comments, as I wasn't sure. As you said, there is something "unsettling" about the leveling, but I can't figure it out either. I tried my usual rule of thumb, ie, to connect the same point above the water with its shadow, but it did not show much change. Ultimately, it has to be your esthetic decision, not geometric one, how much to level it, or if at all. As for me, your second version looks more esthetically acceptable.