Water in the pan, sand in the pan, clay flower pot base, etc... all serve the same main purpose. They are thermal masses that moderate temp swings in a
WSM. Water has some other qualities so I'll address it first.
Water, unlike the other things people put in their pans, can phase change in the smoking environment. What I mean by that, is if you heat water over 212*, it starts to convert to steam. There is a unique quality about this. And that is it takes a rather large jump in energy (energy put into or absorbed by the water) to change from liquid water at 212* to steam at 213*. On the flip side, steam wants to naturally drop back to liquid water in that same 1* temp range. But like the jump in energy to flash water to steam, it also sucks energy out of the air as steam drops back to water. So in addition to serving as a thermal mass, water in a smoker is "happiest" at that magic range of where smoking begins.
A thermal mass tends to hold heat. Let the temp drop, and it will start to radiate heat slowly, let the temp rise and it will absorb heat slowly. Think of a brick wall that has been in the sun all day. It stays warm to the touch for hours after sundown. This is an example of thermal mass. The result is a thermal mass (any mass, water, sand, clay flower pot base, etc....) will slow the temp swings in a
WSM, both up and down. If you want to try an experiment, run the
WSM with nothing in the water pan (leave the pan in to cause the air to flow to the outer edges like normal). You will play hell chasing the temp swings with nothing to moderate the changes.
Water has the combination of both thermal mass and that magic quality of the liquid to steam point being so close to the smoking temp of 225*, so it is the perfect medium to learn how to tune a
WSM as it is more forgiving. It does add some moisture to the air in the pit, but I doubt it really matters. The main benefit is it makes temp control easier and helping prevent a run-a-way pit with higher temps.
Once you get the hang of controlling temps with water in the pan, you can try switching to a clay flower pot base. The clay pot base will let your fuel burn longer. The reason for this is you are not dealing with the water sucking energy out of the air as the steam drops back to moisture in the air. That jump from liquid to steam at 212-213* is also the reason you use more fuel when smoking at 225*. It's not a huge difference, but there is science behind it.
Another quirk of a thermal mass like the clay flower pot base or sand is it moderates to a point. Once the mass is at the pit temp, it does nothing to help slow the increase of temp (where water would due to the steam to water droplets phase change sucking energy out of the air flow). A pit with a solid mass like a clay flower pot or a pan full of sand will run over the set temp and take longer to drop back down after the fire level is under control. This is due to the thermal slowly releasing that energy. So you need to understand vent control to keep a solid mass moderated pit from starting to run over temp in the first place. This is why water is more forgiving. A solid mass give the benefit of moderating temp swings when you open the dome to add meat, brush with sauce, or whatever (but remember, "if you are looking, you are not cooking", so leave the dome closed unless there is some part of the smoke that needs to be performed).
As to the BBQ Guru (or any other brand of "power draft"), you basically close all the vents except for one hole in one vent. A computer uses a temp probe in the pit at grate level to control all the air flowing to the charcoal for total control of the pit temps. It is basically a set it and forget it sort of thing if all is set up correctly. A WSM with a power draft is a wonderful smoking machine!!!! Especially when you are doing a 18-22 hour overnight smoke. No sitting up all night watching for temp swings and adjusting vents as your fuel level drops. With a power draft, if you have fuel, it will hold the set temp. Once you use one, you will never look back. They are worth the expense IMO. But there is no reason you absolutely have to have one to enjoy a WSM. It is a fine smoker in it's own right.