We've had bugs in our food for at least my entire lifetime, whether it's the minimum amount allowed in the ingredients of dried or pre-packaged food, like cereal, ground cinimon, chocolate, tea, candy glaze, canned tomatoes, hops for alcohol, etc, or being outright sold coated in chocolate in candy stores as we see with things like chocolate covered ants. Even a common red dye known as Carmine (or cochineal) that's in our sodas, baked goods, Starbucks coffee... is made of crushed beetles.
Head towards Asia and you'll find snake wine and scorpion wine. From experience... snake wine's kinda nasty, but scorpion would probably taste better?
As for the recycled water, my old science professor at one of my schools had us go to a Sewage Treatment Plant to learn about what we're drinking. It seems nasty at first when you pass through the rooms that literally smell of collective shit, but the presentation over the microorganisms that consume all the waste byproduct was surprisingly informative.
Yes, you are drinking what was once someone else's pee, but you were doing that before too through processes like evaporation and, with those organisms in treatment plants, the trace amounts that may remain are significantly reduced compared to nature's way of handling it through the soil and the like.
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