So, i know the water oracle was just relaying what she was told but... is she just an asshole or one of those characters who’s meh about everyone and everything?
The latter.
The water oracle acts like that because she's a princess so she chooses everything based on country's interest. Her cold attitude towards everyone is because she's awkward.
She realizes she makes mistake to judge people based on skills (which should be fair enough) after her chosen heroes are basically useless while Makoto strives with his "limited" skills
I WILL GO. to sleep. as the sun rises. it is challenging. will i give up? no. i pray to my goddess. the evil god. but first, i must save a goblin. before i go to sleep.