Would be very nice, had my whole system watercooled, however thought It was quite scary leaving my £1000 system on with 2 litres of water inside, so I sold it all and brought decent air cooling, its still just as quiet
If you just filled it up with tap water yes its bad if you use some distilled water think its distilled anyway ive have a drink i could be wrong but due its got a lower conductivity therefore you shoudl technically be able to submerse your system int the stuff and it should still run.
People have put entire systems in oil before and they still work fine.