Yeah, file under "too good to be true." - I'm a little disturbed that so many people seem to be gathering the impression that it's actually a reasonable way to treat water.
It seems like a dangerous myth which could get loose in the wild and be nearly impossible to clear up - I can see people now having the vague idea that it's OK to use for water purification because, after all, it's in lots of kits and people talk about it online.
If I hadn't dug for ages and found that EPA report, <b>I'd probably believe that</b>. Worrying.