Water jets can cut wood. Indeed it was to cut wood that water jet technology was first worked on. They can also do cuts that are pretty much impossible by any other method.
Here are some links:
http://www.flowcorp.com/waterjet-resources.cfm?id=335
http://www.waterjets.org/waterjet_pictures_10.html
http://www.pimkey.com/~toilemet/cl/sculpt/jetdo_a.htm
It is just impractical to build a DIY water jet because the equipment is very specialized. As an example a high quality pressure washer may develop 2500 to 3000 psi; water jets cutting needs ten times this pressure.
An open mind is a virtue...so long as all the common sense has not leaked out.