Yes you can get bottles of water refilled onboard.
You can order drink in advance or buy them once onboard.
I can't speak to dining packages.
Upgrades for Crown & Anchor membership tend to be only available to those that have cruised RCCL the most. Rarely you will see upgrades for first time or lower level cruisers - consider those on par to OpUps on airlines, only when necessary for revenue management purposes.