Thanks Fanattic, I've tried to think of the deck as more transformational in the instaces I have Chalice boarded in an feel I have a plan for which situaltions. I have a straight Chalice version too which seems good and those decks, like Donnally's have been winning. But I still have the sense that while I appreciate the Chalice builds straightforward brutality, it seems to have lost a bit in nimbleness too, which for a mono-blue deck is a sin. Times have changed and countering has been neutered somewhat, probably for the best of Magic overall. But like benthetenor said more or less, one shouldn't abdicate what blue is good at. Chalice is powerful and I use it in another deck too, but I think I want to try a more balanced approach first.
Merfolk
3 Tidal Warrior
4 Cursecatcher
4 Silvergill Adept
4 True Name Nemesis
4 Lord of Atlantis
4 Master of the Pearl Trident
2 Merrow Reejery
4 Phantasmal Image
1 Umezawa's Jitte
3 Daze
4 Force of Will
3 Aether Vial
4 Mutavault
3 Cavern of Souls
11 Island
3 Wasteland
Side
3 Chalice of the Void
1 Dismember
1 Pithing Needle
1 Spell Pierce
2 Swan Song
2 Submerge
1 Echoing Truth
2 Grafdiggers Cage
2 Relic of Progenitus