Turns out The Brewing Network Sunday Session just had a segment on this topic. Doc talked about three techniques for lowering final gravity. He mentioned the Beano trick, pitching fresh yeast, blending with another beer, and diluting with water. He used the last two for a Baltic Porter that finished high. The brewcasters all tried a sample of the original, the blended, and the water diluted beer. Everyone preferred the later two over the original. No one mentioned a watered down taste but noted diluting with water and blending give you two different beers, each having pluses over the other.
Interesting note on boiled water still having too much oxygen. I think for a short term fix, such as bottling and judging soon after for a competition, I wouldn't worry about oxidation as much. But definitely if keeping it much more than a week or two. I think I'll try diluting with water but only try it for half the batch. Then I can compare the two over time.