Oh boy oh boy, I get to be a contrarian again!
If you get out your calculator and figure out how much volume of water you add over say 3 rackings to a wine, even if it is a quart total, that is not much of the total liquid volume by percentage. That's 5% of total volume in a 5 gallon carboy. So a 15% abv wine drops to 14.25%. Less than one percent. Hardly discernable in a wine that finished dry.
The only issue I could see where .75% alcohol dilution might be a problem is if you are right on a 9% wine and the drop could cause preservation issues if you don't sulfite enough before bottling. I have never bottled a wine under 13%.
I have never done this, but I'll bet that if you use a hydrometer with a potential alcohol scale on it and find out the abv by subtracting initial potential from finished potential, then test again after all water topping has been accomplished, it will bear out the math above.
Tastewise, 5% would be the tops for dilution I would think. (This is why so many forum winemakers correctly urge people to get mega-volumes of fruit into the initial must formulation.) That issue can be addressed on the back end with an f-pac or juice addition. Still, that is a lot of water to top off with, and the vintner would be wise to plan initially to make enough wine volume to fill the carboys at first racking, or provide for a separate gallon jug to top off from. That solves a lot of later trouble, if you can get off to a good start with full carboys on first racking.
Billy, you did the right thing by topping the rest of the way with wine, though. It sounds like the initial wine volume was way off from carboy capacity, and I would be leery myself to go over 5% total water in the racking process as a whole.
I have dealt with all these issues and worried (mostly needlessly) over them. I am relating all this from my own experiences FWIW to the forum.