1. Well aesthetics is oft a primary consideration for many folks and ya gotta be happy with what ya buy. OTOH, water cooling systems are large also.... the big metal thing (radiator) is just moved to another location. But because aluminum doesn't move heat well, CLCs require extreme rpm fans to provide adequate performance, and this is where all the noise comes from.
2. As to working better and quieter than air coolers, the answer is no and no when talking about CLCs.
a) Custom water loops do perform better thermally and more quietly than air coolers.
b) CLC type water cooling , oft called "faux water cooling" does not.
3. Here's is Corsair's flagship CLC type water cooler (H100i) compared with 2 of the best air coolers (noctua NH-D15 is quietest, R1 is tops thermally).
a) As you can see, the D15 beats the H100i by 2C, the R1 takes it by 3C.
b) The H100i is 12 times louder than the D15
c) Personally, I would take the 5 dbA quieter Noc over the R1's 1C advantage.
d) This is what the H100i sounds like... I have to walk outta the room at 55% CPU load (about 1:15 mark in video)
https://www.youtube.com/watch?v=cTf0Vq1j4Ec
4. Issues with CLC's:
a) They violate the 1st rule of water cooling which is to ever mix metals
https://martinsliquidlab.wordpress.com/2012/01/24/corrosion-explored/
b) Aluminum radiators have much lower heat transfer than copper used in custom loops
c) The minimum recommended flow rate for custom loops, even single block loops is 1 gpm, the Corsair H series is about 0.1 gpm
d) They have no reservoir so that you can see if liquid level is OK.
e) They can not be expanded to include other components.
f) If you are concerned after a few years, you can not change the coolant in order to refresh the corrosion inhibitor / algacide
g) They can not match the thermal performance of cheaper air coolers
h) They can not match the acoustic performance of cheaper air coolers
5. There is a middle ground. While all CLCs (closed loop coolers) are AIOs (all-in-ones), not all AIOs are CLCs. The Swiftech and EK AIOs are OLCs (open loop or expandable loop coolers) which:
a) soundly outperform both air coolers and CLCs thermally.
b) acoustically are about twice as loud as the best air cooler but 1/6th as loud as the best CLCs
c) have none of the issues a thru f above.
6. Suggest ya read the whole page, but I'll quote the important parts
http://www.hitechlegion.com/reviews/cooling/liquid/40870-swiftech-h220-x-open-loop-240mm-cpu-cooler-review?showall=&start=3
Installation of the [Swiftech] H220X was very easy, probably the easiest liquid cooler I have ever done. A huge part of this is thanks to the use of the Apogee XL block, which is a flagship top tier block and has a mounting system fitting of that stature. I had noted just how easy the install was when I reviewed the block alone, and comparing it to the Asetek/CoolIt/etc. kits they make Corsair units], it is absolutely a world better. The radiator/pump/reservoir assembly go in simply with fan screws to your desired location in the case. The PWM splitter is as easy as it gets, and takes absolutely all of the guesswork out of the wiring setup.
In terms of performance, well….we could simply leave it at the fact that the H220X is simply the best performing out-of-the-box cooler you can buy today. Period .... 240mm CLCs can’t touch the H220X in all out performance, and at tolerable noise levels the H220X flat out embarrasses them.
There is not a 240mm CLC or air cooler that can beat it, and it does it at 20+ dB quieter than the competing CLCs. To sum it up; the H220X offers better performance, lower noise, better aesthetics, flawless design and build, better components and the option of expandability when compared to a CLC. Putting it gently, choosing any CLC over the H220X would be doing yourself a huge disservice.
I usually recommend that those in your situation start out with a Swiftech H240-X for CPU cooling / overclocking. the unit's pump and radiator are adequately sized for a hi-end nVidia GFX card and if you want to water cool the GFX card at some point in the future, all you need to is buy a water block, 2 feet of additional tubing, 2 fittings and some extra coolant.
http://www.hitechlegion.com/reviews/cooling/liquid/42047-swiftech-h240-x-open-loop-280mm-cpu-cooler-review
http://www.swiftech.com/H240-X.aspx
That all being said, for what your immediate plans are....you would be fine with a $30 air cooler. The things is, once ya get the OC bug, ya tend to wanna do more, and when ya take that option, that means basically sticking the $30 cooler in a drawer.
When a user is concerned about aesthetics on an air cooled build, I usually recommend the PH-TC14PE which comes in a variety of colors to match case or component color schemes. Unfortunately, while they ranged from $55-65 around thanksgiving, they are now selling at $70-$85 ... my guess caused by the fact that more systems are using CPUs that don't come with stick coolers.
http://pcpartpicker.com/parts/cpu-cooler/