Interesting theory. Just FYI, I installed a used, replacement tank last summer that I flushed, cleaned and completely dried out. Can't guarantee there isn't any water present, but there's not 23 years of crud caked to the bottom.
When the gauge was reading on "E" for the past couple of tanks, it was only taking 8-10 gallons to fill so I know the gauge is off. Curious as to whether or not my low level light works, I've been ignoring the needle and nervously watching for the dim glow; 338 miles on this tank thus far.
And a mouse in the glove compartment.
I have done the hose delete, COP kit and have a MarkD chip.