Mike, my preferred glue to build with as you know is
Titebond II. The original Titebond glue was and still very popular and is a fine glue to use. Titebond II is designed for exterior use while its predecessor was not. It's also a bit stronger as well. Both sand very easily and both are unaffected by finishes. I never dilute my wood glue and use it straight out of the bottle. I really don't see the need to do this as it penetrates the wood pores well and in my mind, diluting the glue will weaken its overall strength. I also make sure that my glue is fresh, meaning that it has a shelf life. When I start a new project I always start a new bottle.
I like the open time that it affords me. It gives me the time I need so I don't feel rushed when assembling sticks. Maybe to some builders, this glue is too slow for them, but it suites my building style... It's relatively inexpensive , doesn't have any fumes and is available at just about any hardware store or lumber yard. What's not to like about it?