The water shader fix appears to work fine. In fact, enabling r_skipDepthCapture seems to cause a different, worse side effect -- some triangles of the water 'freeze' (pic 1). They simply stop animation the distortion effect. Turn r_skipDepthCapture back off and they begin animating again, and the front geometry stops distorting with the water. (pic 2)
Oddly, r_useSoftParticles seems to behave the same with the fog in the st. lucia sewer regardless of whether I turn it on or off. I can upload pics if you wish to see but they're not very exciting (all showing same thing basically). However, when I toggled the value on/off in the training mission, at a spot near the canal where a stairwell to a door is lit with some soft particles, I actually experienced the particle 'edges' with r_useSoftParticles ON, and didn't get it with the fix turned OFF. I triple checked to make sure I wasn't goofing something up, but it happened each time. WTH?
This one shows the banding:
And here is after turning off soft particles (no banding, or greatly reduced):
Just a bonus pic to show how jarring/extreme the whole thing can be. Using skipDepth or not doesn't change the image.
Edit: So currently, my best results -- I think -- are to keep r_skipDepthCapture off (to benefit water) and r_useSoftParticles also off (to avoid particles showing through surfaces and creating edges... which, if I understand correctly, it was supposed to fix, not cause...)