Is there any source material to show that waxing is bad for the car? Water is only one problem that causes paint to go bad over time. I was under the impression that "waxing" a car (using synthetic for protection and traditional wax for shine) protects against elements other than water, such as UV light. UV light causes most fade, so if you don't have a good barrier against it, the paint will start to fade much more quickly. Or, more accruately, the clear coat will break down, which will then cause the paint to fade over time. You may not have water spots, but the shine won't last very long.
I had thought it best to dry the car by hand after each wash to prevent water spots. I don't have much of a problem from rain...just washing.
I'm not stating any of this as fact. I just want to know what the best course of action is in keeping the paint job up to snuff for as long as possible.