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Within the constraints of having everything in one case, though, a watercooled system means you can have more / bigger fans cooling more / bigger radiators, by dint of not being restricted to being stuck to the cpu / gpu.
But yes - having the rads somewhere different entirely would be better. As would cooling with freon.
NotThamesWater
@chez_jay
The point is, if you're going to move your radiator away from your CPU, which is what water-cooling hoses allow you to do (as @useless says above, a conventional CPU cooler still has heatpipes and a radiator, they are just close to the CPU), it does not make sense to position it or its fans so that its heat is dumped into the case rather than out.