Here's a brief update on the Anti-Exploit problems.
The problem involving water affecting AE mode has been fixed. Players on the Isengard Private Preview server are reporting positive results. As one player put it:
... if people can actually kill things in Annuminas and Tyl Ruinen, that's HUGE news.
This fix will be in Book 8 and will be testable on the Bullroarer test server when Book 8 is opened there. There will still be cases where Anti-Exploit mode is triggered, but they should be predominantly legitimate cases where the monster cannot reach the player.