I have been diagnosed with giariasis once – though the tests were not positive and the doctor I dealt with said they are often not positive even for people who are infected – and I'm pretty sure I had it another time, since the symptoms were identical to the time I was diagnosed. Neither from Sierra water, by the way. It's not something I'd care to have again, and I found the cure nearly as unpleasant as the disease. So I'm pretty careful about my water, but I don't treat it all the time. I do when I am in high use areas, but often don't when I am well off trail. Or when I am standing at the spring or where the snowmelt runs out of the snowbank.
As for water consumption, I work as a contractor/carpenter, and am often outdoors working hard in 90 degree plus weather. I can definitely see the difference in the color of my urine when I drink less, and I can feel it when I drink less. I find that I need a least a gallon of water to get me through the workday in those conditions – that's after I have maybe 12 oz or so in the morning before going to work, and then I'll drink probably another quart after work, so altogether it's really almost a gallon and a half, and sometimes more than that. I know I am not drinking too much because even with all that I may not have to urinate all day. It's kind of an extreme situation, but not more so than hiking all day in hot weather. And I do find that in situations like that I definitely need to drink before I am thirsty or I'll have a hard time catching up. And If I get behind on my water I can feel the difference in energy and at the end of the day I will have more muscle soreness. I think in normal circumstances drinking when you are thirsty will do just fine, but in extreme circumstances, like working hard in hot weather, or backpacking at high altitude in warm, dry weather my thirst at least does not keep up.
The other end of the spectrum is working in the winter – which for me isn't very cold weather, but temperatures in the 40's mean I can work all day and hardly ever sweat, and then I am comfortable with maybe a liter of water or less all day. So how much I perspire is the big factor for me. Cold and damp – I don't need much water even when working hard. Hot and dry and sweaty – I need lots of water.
I have a friend who really sweats a lot – if we go on a hike on a warm day where I end up with my shirt damp here and there, his is so wet he can wring it out. And he's in better shape than I am if anything – he runs regularly. And it's not as if he really runs hotter than I do – He's cold when I'm cold. He just sweats a lot more. So he has to drink a lot more water than I do to stay hydrated.
What it comes down to is that one person's water needs are not the same as another's,and what you need in one set of conditions is not what you need in another set of conditions, and the only way to know what you need for particular conditions is to have experience in those conditions yourself. And If you are going into conditions you don't have experience in, be conservative until you know what works for you.
By the way – I had a kidney stone years ago and the urologist told me, after analyzing the stone and doing a test where they save all your urine for a whole day and analyze that, that my problem was I just didn't drink enough water. Since then I am more careful about getting enough – kidney stones are no fun!