The water cooling will actually be dumping more heat since it is taking the heat from the processor (and anything else you cool) more effectively. So the processor will be cooler, but the air coming out of the radiator will actually be hotter than just a regular heatsink (not by a huge amount though).
The only way to lower the heatdunp would be to lower your overclocks (or underclock) which is what the MAD Cool & Quiet does as well as that Intel thingy.
__________________ Project: Black and White i7 920 D0 | 3 x 2GB DDR3 | EVGA X58 SLI LE
XFX 4890 | Corsair HX750 | Corsair Obsidian |