I think people who were already somewhat experienced users already knew that drinking water by the gallon was a very bad idea and that the drug itself was not immediately lethal in that way. Although it was still fairly early on in terms of mainstream use all the people I knew who used it seemed to be pretty clued up about the basics. Admittedly I did still hear plenty of hoary ol' cliches about "getting lodged in the spine so when you crack your back you get high" and the like. I think that one is still official US stance on LSD :D
And yes, whenever a stamp is said to have killed somebody they always get really popular. It's kinda twisted but I think people are so used to media reports being innacurate they just assume it must be anything other than the pill that did the damage. Not the cleverest attitude these days in particular with all those PMA/PMMA pills popping up