I think you can use either the rack OR water, not sure you would need both. The deal is just to cool them and then you can cut off the excess as needed.
I don't allow the plastic to drain all over. I let all excess plastic drip off of the frog body, round the nose and then put in water. With a reack, you dip the frog, allow some to run off and then just hang the frog and the rest of the excess will drip leaving a tag to cut off later. The rounding way takes way longer!!! I just like the result.
On the plastic, I think it is personal but I use medium and dip in soft. I just don't like my frogs so hard that the frog can get in the way when you try to set the hook. More will tear up but rather that than constantly missing fish. The bait has to fold a little for th hook to get to the fish's mouth.
Just my take...
Jim