So it all worked together and I bought it. I got a Nagalene bottle rather than the Camel Back one, since it was a bit cheaper and fit in a bottle cage a bit better. It definitely works nicely and its better full of water than empty. It casts a nice glow all around the bike very much like the DLG, though I'm guessing its not quite as bright. I bought a pink bottle as it was the lightest one REI had. The whole set up cost me $28.25 plus tax. It uses 3AAA batteries.
I've taken a photo, though digital doesn't handle low light very well, so in reality it looks a lot nicer than this



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