Uploading update now. New recipes:
4 sugarcane and one mixing bowl = 1 water droplet
4 water droplet = 1 water source
4 sugar + 1 dirt = 4 sand
Here's my thinking. sugarcane is quite watery, but most of the water is stuck in the fibers and can't be retrieved reliably without better tools. 4 sugarcane can get a decent sized droplet, though. For later-game balance, it isn't breaking anything. There are three other things too do with water droplets: mechanized sponge (what are you going to soak up?), fish scanner (requires several other types of droplets.) and smelting into water. (just make an aqueous accumulator) The water source block can't be used to sift fish. It can only be used to place down. I used water source block because I want it to be immediately available without supplying a possibly tier-breaking bucket. For the sand, sand really isn't all that useful. You can turn it into dust for clay, but you still need a furnace to smelt a crucible or a clay bucket. 4 sand costs 17 sugarcane, meaning about 4 sugarcane per sand. You still need a block to place under the sand so it doesn't fall. That's an extra 2 sugarcane minimum before cobblestone.