Conceptually it is great, but practically, I am not sure. If the mod was successful in bringing down temps drastically, I am sure he/ she who performed the mod would have shared the results. Considering how small that cooler is, I am not surprise it may even perform on par if not worst than conventional air cooling.
The point of water-cooling is to move the heat away from the heat source to where it can be exhausted more effectively: where you can have better air-flow and/or larger radiator surface area.
The water-pipes here are more like a substitute for heat pipes. Heat-pipes need a high temp to start working though, so this might be more effective at low load. At sustained high load, I doubt the difference would be that much to a traditional copper heat sink, maybe even worse.
Nice job, but I really wonder if it actually makes a difference or is it just AIO for sake if being able to say it is AIO. Since usually small AIOs already perform at best equally to regular air coolers. And this also doesn't take heat away from CPU area, since whole thing is on CPU, unless I am missing something. It just feels like air cooling with extra steps of having AIO in between.