Tweed-
Optimism is fine, but I don't hold out much hope for faith-based physics. If this system works, it should be able to be reproduced by independent experimenters. I'm willing to bet that, if water is actually broken down into hydrogen and oxygen by foe sort of oscillator, the energy you put in will exceed the energy you get out.
      Considering how important such a process would be if it worked, it shouldn't be difficult to locate any number of independent experimenters.

BTW, conservation of energy in the physics sense doesn't refer to using less--it just means that you can't get more energy out of any process than you put in.