Drinking according to thirst may be fine for normal day to day activities (including gym training)
Drinking according to thirst in more serious situations such as extreme locomotive endurance activities, like ultra running, mountaineering (especially at altitude and in the cold), long distance cycling, etc. is a sure fire way to lead to performance degradation, dehydration, heat exhaustion, and worse. In these types of activities one needs to drink well before one feels thirsty. There is also benefit from 'pre-hydrating' for days prior to an event...
I can recount witnessing near critical situations resulting from people not drinking because they weren't 'thirsty'...