Well, yes. I think 20/20 must have done an expose rubbing their little Q-Tips all over some aircraft lavatory and WHAM... suddenly it's unsafe. I don't remember any sudden rash of pax deaths or illnesses related to onboard water myself.
Our water is perfectly safe, especially when you consider how hot the water gets when brewing coffee/tea. We ONLY serve purified water for drinking, but I've ingested lavatory sink water before, it's CLEAN in the sense that it comes from a clean tank, it's no recirculated or anything.