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"oil cooled" is a misnomer. The oil is there to lubricate, only. As a side effect, it does absorb some of the heat and carry it away... but very very slowly.
If you opt to not have a water cooled center cartridge - you can't just turn the car off after a hard run.. it will "coke" the oil in the turbo - causing it to separate and carbonize. Thats why they have turbo timers - allowing you to lock and leave the car, but having the car idle (which contributes far lower exhaust temps to the turbo than a high boost run) and allowing the oil to circulate until the turbo is adequately cooled down.
A water cooled turbo will virtually eliminate the need for a turbo timer, however, the rule still stands that you shouldn't turn off a vehicle *right* after running it very hard... but day to day driving, the turbo itself will stay cooler.
There is no discernable difference in performance.. its purely to increase longevity of the turbo and not beat up your oil a lot, especialyl if you don't want to install a turbo timer.
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