Well, I suggest more complex stuff for it to reflect (ok, this is a bit impractical but think of the Noloben sky, then think of the water). BTW, those settings are as close to the Noloben ones as I can get. If you want, you can add a cubic-env rather than a dynamic one so you can have it reflect what ever you want (I don't really suggest this because the water will not seem to fit into the landscape).
I don't have too much experience with making seas with wavesets (all the testing--even from the dawn of pyprp wavesets has been with small bits of water). It may require moving the env-center to a place that's not inside the island (this happened to me when I tried making a little tiny island... it didn't end well.

).
Ask Nadnerb, he got the TunnelDemo sea looking great.
~Lontahv