The first time I went to Mexico, I was excited to get a fresh coconut, a hole cut in the top with a machete and a straw inserted. It was much less refreshing than I expected, so I don't understand this trend.
I lived in Vietnam for about a year. On many major street corners, you could usually find someone selling coconuts. The vendor would pick up a fresh one, chop the top off with a machete, and insert a straw + spoon. While the quality varied, more often than not they were good. That said, it's definitely not a taste everyone will enjoy.
I've been back in the states since June. The coconut juice/drinks sold in the stores taste nothing like actual coconut juice. I'm not sure people would go as crazy over the real thing...but who knows.
Did you by any chance try it while on port/coastal/tropical town? I know not everybody likes it, but having grown up eating and drinking coconuts I love the stuff. And yes, the packaged water found in grocery stores here (U.S.) is not quite the same, but I do buy one by 365 (Whole Foods brand?) which is cheaper and IMO better that the alternatives found here.
Sometimes the coconut is not at the right point, so the water will no only not taste as sweet, but will also have an unusual taste, even bitter sometimes. Even though he shouldn't, the guy will still sell it to you, though.