Given you didn't really specify any criteria, I had to vote air cooled. Air cooled systems can be passive, or very close to it without much of a hassle (not sure about the video card, you might be limited to a 5770), and hence can be *very* quiet.
Water cooled systems are a niche, but, for me, an important niche. I want a highly overclocked system that runs very quietly. Water cooling allows this, air does not. I would not recommend water cooling for anyone that doesn't overclock. Its simply not worth it for most people. WC tends to be expensive (unless you go ghetto, but you lose a lot of performance if you do), and most systems just do not produce enough heat. The exception is overclocking (and perhaps insane benchmark systems with tri-SLI 480 gtx's).
From a noise point of view, with water cooling you can go passive (ie no fans), but you always require a pump. Thats really the main difference.... you can get pretty quiet pumps, but again, unless you need water cooling, its not worth it. The exception might be gamer graphics cards -- but there are after market air cooling solutions for most cards which work well.
TL;DR version: You can prise my WC gear from my cold dead fingers... but I wouldn't recommend it for everyone