I agree that the fact that it's 'off the wall' gives War Babies its charm. It is a wonderful album, but I've had people listen to it and then look at me like 'What in the world was that?!'
I wish H & O would have done another similar album. I guess the one most similar would actually be DH's solo Sacred Songs (1980).
When it comes to H2O, I see it as reasonably comparable to Voices and Private Eyes. Maybe I'm missing something!