Sam,
I have to agree with you 100%
I have multiple old 2 cyl Green and Red tractors that I have accumulated over the past 50 years and I drain the water out of the gear housings yearly to keep them from freezing/rusting.
With 15-20 gal reservoirs each, it is not cost effective to drain and refill with fluid.
An oil/water emulsion is the last thing I need.
But there are some applications I'm sure, where a water absorbing quality is desired.
To each his own, and the application I guess
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