As you said, the reason the person who gave you the recipe put so much water in it was to get it to work with his 25 lb motorized stuffer and 3/8" tube. Since you are using a 5 lb. crank stuffer, you may not need as much water. I've not used my 3/8" tube with my 5 lb stuffer yet, so I can't tell you for sure. If I was you, I would add 1 cup per 5 lbs and then put a small amount in your stuffer and see how easy it is to crank. If it's too hard, then you can add more water and try again.
For sticks, I would think that having a relatively viscous meat mixture would be somewhat beneficial, because it would fill the casing up tightly and help to eliminate air pockets. Like someone else said though, most all that extra moisture is going to evaporate when smoking, so it could cause shrinkage and wrinkled casings on your finished product. I'd put just enough liquid in it to get it to crank comfortably, but no more.