Physics based doesn't mean accurate. Unless they are doing a calculation of every single water molecule and taking into account the riverbed's geometry there is definately room for error. I don't know just how they are doing the water, but I have seen a few shots that didn't look quite right...
There is always "room for error" because it is a game/simulation so its not saying anything. However, I stated that it is reasonable because it is supposedly physics based (with the pretense that I remembered right), and thus most of the odd shots I remember people talking about do have real-world examples that look like that.
In any case, what I'm saying is that you may try to find the screenshots you were talking about and I'm quite certain there are going to be people who can post real-life examples that look like that under possibly similar situations as in game. No whether or not it looks artistic or pleasing or not "odd" may be a different issue. As far as some of the people criticizing the "noisy" water is concerned, the real-life examples that one posted are "weird" or "odd", but its not like you can criticize the real world.