While I generally agree with that first, that last is not so. A not-inconsiderable part of it is converted to water vapor and dumped into the atmosphere. That's pretty much the purpose of these things:
If you think the evaporated water DOESN'T get back to the watershed you're an idiot. Read the article, such heat exchangers "use" 1/10th of what a once-through water-to-water unit does. And even THAT gets returned eventually.
No--this whole issue is due to the fact that Atlanta failed to build reservoir capacity to match population growth.