Just to give you one other illustration about the power advantage of liquid cooling, look at the motorcycle industry (and b/c it's another of my favorite hobbies). Motorcycles have traditionally been air cooled. The lastest generation of fast motorcycles are water cooled. There are 1000cc engines putting out 160 hp and these aren't race engines. Racing motorcycles in MotoGP (Grand Prix racing) are getting 200+ hp out of 1000 cc. Most modern air cooled production motorcycle engines of 1000cc put out a little over 100hp.
Now obviously the power differential on small engines like in our tractors is not going to be as great, but it gives you an idea. And like you said, it adds extra parts and fluid and cost to the tractor.
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