I shake the bejeesus out of my racking cane, and I usually twirl both ends of the hose, I figure that the sulphites in the solution I use will linger long enough for it to dry out. Haven't had fuzzies grow in a racking cane yet... I hang my hoses and my racking equipment on a pot lid holder that used to live on the kitchen wall and now lives on the side of my basement brewing cabinet so it's open to the air. I wish I could leave it upright so stuff drains, but I'd rather risk the horizontal hanging than having my bucket of clean equipment kicked over again. "Was that shattered plastic bit important?" "Oh, that was half of my auto-siphon. Not anymore."
Maybe you could hang your hose over the pantry door until it's dry, before putting it away? I used to loop mine over the cupboard over the sink for a while so it could drain somewhere other than my floor.
And hepcat, the stuff you're adding to the water to make your sanitizing solution should easily kill anything found in a municipal water supply within seconds of being mixed in.
I think the reason they might want you to use distilled water (if it specifies that on the label) might be for pH reasons, municipal and well water tend to be alkaline to varying degrees (if memory serves, Ottawa water tends to be around pH 8 and my mom's well water was around 9) and distilled water tends to be slightly acidic (from dissolved carbon dioxide). Boiling it likely won't affect the pH. But I don't use the same stuff as you do so this is just a wild guess...