I'm on a half way to a beautiful interactive water in the StoneDrop game.
I've implemented a fragment shader which performs water surface movement computations in the FixedUpdate and passes the results (as a texture with heights, velocities and normals encoded in RGBA channels) to another shader which deforms the water mesh in it's vertex shader.
Lighting and reflections are on their way! :)
Gif 1. Water shader mockup