710,
If the turbo was made for water cooling, I would use it. My experience with non-water cooled turbos goes back 25 years when I turbocharged my car, a "91 VW Scirocco. It originally had a non-water cooled turbo with bronze bearings. The bearings would last only 25,000 miles. After going through 2 sets of bearings, I changed to a water cooled turbo and it lasted 125,000+ miles. I also found in my turbo that it ran better on Mobile 1.
My current twin turbo NSX is running water cooled ball bearing turbos. I think they should give faster response and bearing life. There is A LOT OF PLUMBING however and it will take a considerable amount of time and effort to make it an "elegant" installation that you said you are looking for.
I couldn't figure out how to send photos since my files are too large. If you send me an email I'll try sending some photos.