Really? Well water is dangerous to use for incubating eggs? Where does her water come from? Has she tested your well water while you were not looking? Maybe some well water could have minerals or something in it that would harm chicks, but I've not used distilled water either. I've read quite a few articles on this site about hatching and have only come across one person who said distilled water was the best to use. Others say the water doesn't matter as much as it matters that you use the dry hatching method so the chicks do not drown. I have read about people who say when they switched to distilled water their hatched went way up, but I'm new to hatching and have never tried it. I'd love to see how she packs though eggs...just for kicks and giggles.
All I know is, you might want to stay clear of a chick that requires this much attention to detail in order to hatch. Sounds like too much work to me!