As I mentioned, some character is the 2003 film: "Dickie Roberts: Former Child Star" recited this insult rhyme. That accounts for why it is so well known. But, imo, this rhyme is so popular because kids like creative dissin [insult] rhymes that rhyme.

Here's my thoughts about some of the sources for that "BrickWall Waterfall rhyme":

ABC - The Jackson's song hit "ABC"
"Hit It"- a commonly said command in R&B and Hip Hop songs [and perhaps popularized by some artist whose name I can't think of but I can hear him saying it-I'm thinking MC Hammer, but then again probably not.

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"thats the way uh huh uh huh
i like it uh huh uh huh
thats the way uh huh uh huh"
Title and refrain of hit song by K.C. & The Sunshine Band-release date October 15, 1999

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"Brickwall waterfall" [here's a stretch-but it feels right to me]
The old children's game "Water-flower".

I know I mentioned this game in another thread, but it's not coming up in the DigiTrad or the archived threads, so here's the words to one version of that pantomine game song:

Water-flower, water-flower, grow-in up so tall,
All the young ladies will sure-ly, sure-ly die,
All except Miss 'Lin-dy Wat-kins, She is every where.
The white folks say, The white folks say,* Turn your back and tell your beau's name

[slightly faster]
Doctor Doctor can you tell
What will make poor Lin-dy well?
She is sick and 'bout to die.
That will make poor Johnnie cry.
Marry, marry, marry quick.
'Lindy, you are just love sick.

John-nie is a very nice man.
Come to the door with hat in his hand.
Pulls off his gloves and shows his rings.
'Mor-row is the wed-ding day
-source: Altona Trent Johns: "Play Songs of the Deep South" {Washington D.cC., The Associated Publishers, Inc,, 1944; p. 11}

* this line suggests that these children heard this rhyme or at least part of this rhyme from White folks.

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"Boom with that attitude!" {more commonly given as "Poof with that attitude" -I'm not sure where this comes from, but it is omnipresent in street attitude rhymes & is usually accompanied by that 'don't even go there" hand gesture {palm up in a stop gesture, but held to the right side of your face with your face averted to the left and your facial expression stern}

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"peace punch" source??? ; maybe just a rhyming phrase for-
Captain Crunch- brand name of American cereal

"Bang bang cho cho train" etc- commonly used verse in dance style cheerleader chants

"7-Up" -brand of soft drink

"Tic Tac"- brand of candy/mouth freshener

"Listerine"-brand of mouth wash