Yes, when they drink too much water, they deplete the nourishment in their bodies and have an entirely different problem.
I think the problem there is electrolyte imbalance. If you drink way, way too much water--with or without taking E--your electrolytes get out of whack, which can trigger heart arrhythmias that, in the most severe cases, can kill you. Where E comes into the mix is that it makes you want to drink lots of water, because you're getting dehydrated, and it interferes with your judgment so you don't stop. So you drink too much, and boom, electrolyte imbalance...
A good way to avoid electrolyte imbalances when you're exerting yourself (dancing, playing sports etc.) is to drink apple juice instead of water. Apple juice has a pretty much perfect sodium/potassium balance, exactly what the human body needs. In that respect, it's far better than sports drinks like Gatorade. So maybe people on E should be drinking apple juice instead of water, or alternating juice/water/juice/water...
I read something freaky about E once--it's an explanation for a tiny number of the deaths (the ones not caused by dehydration, electrolyte imbalance, etc.). Apparently about 8% of the population has a minor genetic abnormality that interferes with how they metabolize certain chemicals. Normally it causes no problems--it just creates little quirks, such as this: people with this abnormality can't use Nyquil, or other products with the Nyquil active ingredients, because the products don't work; these people metabolize it differently, so instead of relieving cold symptoms and making them sleepy, Nyquil makes them sleepLESS and even hyper. (That fact--the weird reaction to Nyquil--is the easiest way to determine whether someone has this genetic abnormality or not.) When people with this abnormality take Ecstasy, they metabolize it weirdly, and it can make them so hyper their heart rate increases to dangerous levels and finally hits cardiac arrest. A completely normal dose of E can have this effect on them.
I found that doubly freaky because before reading it, I'd already noticed that Nyquil made me unable to sleep--it just doesn't work for me, it makes me hyper. So then I read about this genetic abnormality... and thanked my lucky stars that I'd never tried Ecstasy!