Define "better". All depends on your goals for a system, and a little on the context of where you ask the question. (Extreme overclocking forum might give you a different answer than SilentPCReview.)
Does the system need to be able to be used daily, and is simple part of the equation? Certainly one can go crazy and get very low temperatures, but I certainly do not want to go get out insulated liquid nitrogen bottles just to power up my PC. (Plus the liquid nitrogen is dangerous, and also care must be taken to not just wipe out your hardware. Too rapid a temperature change can destroy your CPU.)
On overclocking sites, folks are all about seeing just how much speed they can squeeze out of their CPU. The impression that I get is if you want to squeeze those last few hundred Mhz out of your CPU, that can require water cooling. To me, stock speeds, or mild overclocks are so fast today, that is not for me. I still have Athlon64's in the 3000 range that still seem plenty fast for what I do, so I do not need to push them that hard.
Peltiers are like solid state refrigerators; they take power applied to them to provide cooling. With enough power, they can provide impressive results, but they too can be tricky to design into a proper system as now you are using way more power, the cold surfaces can cause condensation (and as with water cooling, water and electronics don't mix), and you still have to remove the heat from the hot side of the peltier.
I hope I do not get lynched for saying this here
, but I am even willing to give up a little bit of quiet to keep a system simple and inexpensive (or cheap as my friends would say). I see these huge towers that are popular here because they may cool a system passively or with a very low speed fan, but I have not brought myself to spend that kind of money on a heatsink. (And I do not fault anyone who does. I have bought entire systems just to experiment with; I just have not been interested in the huge heatsinks yet.) I have an Arctic cooling freezer that I got on sale on one of my two fastest systems and a Sunbeamtech clone of that on my other. I think $20 is about the most I spent for either of these.
With Hard drive temps like that (assuming that is in C, not F), I would start with a slow speed fan blowing across your hard drive, and then see if the rest of your system had reasonable airflow and temps.