Not sure why you think the waist/fanny pack is shunned, or not fashionable? I have a Mountainsmith Tour Lumbar Pack with shoulder straps which I like a lot. It can carry two water bottles, and I especially like it for hiking in hot weather, since my back gets more ventilation. I also use it for short ski tours in easy terrain (when I don't need to carry a avy shovel or a lot of other gear).

Fanny or lumbar packs tend to be on the small side, so one can't carry a lot of extra clothing or gear. For that reason I mostly just use them shorter hikes in mellow weather, where I don't feel the need to carry so much stuff. Used within those parameters they work great.