You may need to add water during the incubation process if eggs start to dimple pre-maturely. I used it for two years, and I've also used just Perlite that I mixed myself (make sure to get the kind with no additives like Miracle Grow).
If eggs start to dimple, you add about a tablespoon of water to each corner of the egg box.
The Hatchrite will feel dry out of the bag, but if you put the back of your hand against it, you can feel a slight bit of moisture. Better to start off too dry than too moist. You can always add moisture, but not take away.
The benefit for me using Hatchrite was that it gave me a better feel for the consistency that I wanted to use with the Perlite. The Perlite is definitely better bang for the $, but the experience that you gain with Hatchrite is worth it for your first season.