It really depends on your pack and belt setup/options and anatomy. I put 32oz Nalgenes with Humangear Cap Caps on both sides of the belt, tucked in the rearmost position possible. Will your arms still hit them when walking? Sometimes. I don't notice it other than when navigating through technical terrain, but even then doesn't bother me. One or two MOLLE channels forward, however, and it's more noticeable. When I'm pack training with my dog in warm summer months I'll often carry a 48oz for him in one holster. That one I notice more arm contact, but it's not a huge deal for those instances.
For a shooting bow, it would be personal preference to have one one your bowside or not. I usually have a partial Nalgene with electrolyte mix on one side, water on the other. Never bothered by any slosh.
There is an outfit that has an option for running a hose out of a Nalgene, making it a "bladder" with hose access which I've been intrigued by, but never tempted enough to try out. That would allow the bottle to be just about anywhere with inside or outside the pack but not have the downsides of a bladder (potential breakage, leakage, etc.).
I usually run a bladder during hunts, too, but I'm still a bottle guy. Bladder just helps keep me more consistently hydrated during the hike in and pack outs vs. stopping and inevitable gulps when working hard. Filling bladders in the field can be a bit of a challenge; always feels like you need a third hand, and esp. tough on the fingers when below freezing. I usually filter into a Nalgene and refill the bladder from that. I run Playtpus Big Zip EVOs and they are taste-free, easy to clean, and I've never had one break between my hard use and those of my kids. Just gotta be sure to confirm the zipper is closed 100% before installing the zipper slide. Quick disconnect is sort of the standard now and a key feature for any bladder which has made them more useable vs. old school rerouting at every refill.
