The waist bottle is an acquired taste. The advantage is you can store keys, gu, money, ID etc. The downside is people don't like the sloshing of the water. I'm over it, though. I prefer the waistpack because I like to have the hands free if I can. Hand bottle is great if you just need to carry water only, but obviously must be carried. I think everyone will have their own preference, but I think carrying something to drink is very important, especially for anything longer than an hour.
I just bought a heandheld water bottle that actually has two pockets in it to hold all of that stuff. I just could not get used to the waist thingy! I am not loving the handheld either, but it gets better as the run progresses and it gets lighter! And I am just thankful to have the water!