Definitely agree with this. The mod creates a lot of really interesting trade-offs, changing vulcanus from "the free stuff planet" to a logistics and scaling challenge where you need space to effectively convert water<-steam<-sulfuric acid into any resource. Solar dependency and the amount of chem plants you need makes space a real limiting factor, which makes demolishers more impactful. It also makes efficiency modules super useful, since every kW you shave off reduces your space needs.
I also agree though that in some ways it's somewhat of an over-nerf. Coal Liquifaction requires multiple materials made from sulfuric acid, both steam and tungsten carbide require sulfuric acid when acid output is already nerfed. Aside from the effects on coal-liquifaction, you also basically can't use steam power at all and have to rely exclusively on solar, which is a huge pain before getting cliff explosives or reaching the point you can churn out enough turrets and bullets to kill your first demolisher and claim territory.
Also agree that silicon lubricant feels weird from a flavor perspective, and acts as yet another tax on your sulfuric acid production since if you get coal-liquifaction you need something to do with the heavy oil since fracking it would consume even more water.
For the productivity making water positive, I think you can set outputs of a recipe as "catalyst" which means they're ignored by productivity, though I don't know if this works if the input and output aren't technically the same.
Honestly my biggest complaint is probably that I didn't realize steam power is effectively a trap. With the reduced acid output and steam production from neutralization your factory ends up fighting over steam/acid for power vs production. It was really frustrating until I decided to completely cut steam power and only use solar, at which point everything clicked together. (Though producing enough steel to mass produce 100+ solar panels was also a point of frustration, but that's mainly due to limitations from other mods.)
Some kind of warning, either in the mod description or in-game, making the steam incompatible with steam engines by default, or maybe producing water instead of steam (very little requires steam directly, turning acid into water at the same ratio steam condensation does now wouldn't affect most recipes), would help a lot with avoiding frustration and "getting" what this mod wants you to do.