It was a good explanation. There are a couple of corrections though. First, during fasting/ ketogenic diet what is depleted is glycogen in the liver, not in muscles. Second, 1 gram of glycogen is stored with 2.7 gr of water. So if on average our body store 500 gram of glycogen (350 in muscles and 150 in the liver) then there will be 1500 gram of water. Actually, you said it right :)