פירוש על עבודה זרה 59:10

The Talmud tries to answer that the snake will drink diluted wine only if he himself diluted it. But Rav Ashi finds this a bizarre resolution to a difficulty that involves what they perceived to be real physical danger. If the snake will drink diluted wine, then we better be careful, and not just offer resolutions as if we were dealing with theoretical issues. This is a fascinating recognition that many resolutions to difficulties in the Talmud are not based on demonstrable truth. When it comes to an academic subject, this is okay. But not when it comes to subject with immediate life and death consequences.
In the end, diluted wine is subject to the same laws as undiluted wine. Snakes drink it and non-Jews libate it. But boiled wine is not.