Did you install the heatsink on the cpu yourself? I'm thinking with those temps you make have over done it with the thermal paste. Too little or too much will not transfer the heat off the cpu well enough. Also if your lacking good air flow through the case then heat build up in the case will affect the cpu temps. That doesn't mean run out and buy more fans, just use common sense when setting it up. The fans in the back draw out the air. While the fans in the front draw air in.
As for water cooling I have to agree it's just for bragging rights. Unless you plan to over clock the duce out of the cpu then air will work just fine. Where you sit the computer will also affect how good it cools. Up on the desk in the airflow of the ac works for mine. On the floor is out as I have carpet and cats. They don't go well together. But if you have a board you can sit yours on may want to consider that. It's colder at floor level.