Neither Aquafina nor RO drinking water are intended to be pure h20. They have plenty of non-reef approved stuff in them for flavor, and to save on filters cause it's expensive. If you are goin to buy water, "distilled" is ok because that is for steam irons and stuff where evaping and concentrating minerals and metals would be a problem. You can get a tds meter to check that the water was made right, hasn't picked up copper from the pipes etc. but all it gives you is a number, which could be all copper or something not-bad. Tds just tells you if the filter is working, not whether the water is safe.
That light has 12 x 1 watt and 6 x .5 watt LEDs. My cheap light has 165w per 24" of tank. Maybe you could move the corals up higher and see if they like it? I agree they look stretched a little.
I change 10% water weekly. I think it's better to spread them out for stability, but after a year I'll prolly back off to 10% every other week and see how it goes.
Also, do you have any powerheads in there to move the water?