How often are you watering? I doubt that is too much water. I live in what is normally a very hot, very dry area. This year is exceptionally wet and cooler up to now. Usually I'm in triple digit temps and dry to very dry conditions and I give the daylilies more water than you are doing and I also try never to go past two days before they get water again. They seem to grow better if they don't dry out. Even with the wet year, I'm experimenting by keeping a couple sitting in pans with water. They are growing very well. I do grow all my daylilies in containers and can't currently compare to a plant growing in the ground.