I asked Elon if he could discuss it on the record. His response: “Sorry, but SpaceX is not commenting on Grasshopper at this time, except to say that it is part of a reusability strategy that I’ve had in mind for a long time.”
That fits in with everything else I’ve ever heard (and his adamance that he was going to recover the first stage when I asked him after the first flight). But that doesn’t mean that there couldn’t be a lot more to it, of course,
It didn’t all go into the drink — they found the biggest piece in Calgary. Kind of amazing that they found it. Of course, those pieces of Skylab falling in the Outback were fortuitous (or something) to end up so close to a town as well.
The Canadians seem to have bad luck with falling space crap. Of course, they have a lot of land area.