I think this may only be for PLH/transcon flights. I had two flights yesterday, one of them a mid-haul domestic, and one a PLH YYZ-YYC. Water or OJ served on the first flight in a cup; water bottle handed out for the YYZ-YYC.
I actually think this is an improvement for some people, as it's nice to have a water bottle handy, especially if it takes them a while to start the first drink service, but I guess it's a downgrade if you wanted OJ.
However an actual enhancement would be to provide both - your choice of drink on the ground (similar to many US carriers), even if they have to keep it to non-alcoholic drinks, and then a small water bottle for the flight.
FYI, the water bottle is a 330 ml Naya, so about half the size of the ones provided for international flights.