Earlier quoted context omitted.
That's a good point. But I wouldn't classify the water usage label as "penalizing". It's more, um, informational. So if you're in CA, you might set an ideal "virtual water budget" for yourself (100 kl/mo for example), but if you're in VA, your ideal could be several times that.
But where you are located isn't what matters, it's where the water was consumed. It does not matter where you are eating Californian almonds; those almonds still used Californian water.
Then you can say that a single almond grown in CA uses $.001 H2O, but in VA it's $.0001 H2O, or something like that.
It's just a thought experiment, of course. But it seems like a worthwhile one, if only to introduce the idea of accountability for the cost of water consumption in various foods.