With that said, here's the reality of that particular scenario. Painters do put water in the paint, but not for reasons you would think. Some materials need to have their viscosity manipulated in order to slow drying time, allowing gravity to 'smooth' out the product for a better finish. It also prevents 'drags' and 'sausages'. I personally try not to do it too often, but from time to time I have to. I want my client to have a proper finish.
The psychological effect of green is largely dependent on the tone or hue. Some green hues create a positive, natural atmosphere. However, darker hues or pale olive green can seem militaristic or ill. Multiple shades of green can serve different purposes and set different moods. Maritime greens are ideal for studios and offices as they inspire concentration, while cool forest greens can be used in bedrooms and bathrooms.