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I consider the Recycler -> Generator to be a greater problem, since the Watermill only outputs 2 EU/t while the Generator runs on 10 EU/t.
Guys, guys, i don't see a problem in that. Ok, look:
A good set-up using BC and RP into a nuclear generator, can be damn more that those 10 EU/t.
Snow golem=>compressors=>nuclear reactor. Same you can do with water, buckets i mean. Like that i used to keep ~359 EU\t without much complicated work.(if i remember correctly about the number, somewhere like 350-360).
Just a generator? Auto-collecting cacti and reed, you are done.
Watermill? Looping those buckets is an easy and cheap setup.
So? I don't see any problems in that, i got 359 EU/t for making a little complex setup for nuclear reactor, if i would spent more materials for compressors, pipes and other things, i would get more. The EU you get is just compares to the time\resources you spent for the setup.