Generally, water cooled ones have ball bearings, so will spool up quicker.
erm... no. Ive seen countless journal bearing watercooled turbos, and it was a safe bet (certainty actually) that craigk's turbo is journal bearing.
You're right though, I wouldnt run a BB turbo without water either
Craig - BB cores DO help lag a little - you notice it a bit changing from a gt28 to a gt28r (exactly same turbo sizes and wheels, just BB core)
But more efficient turbine/compressor wheels and housings play more of a part in reducing lag like you say - eg a few of the nissan lads say that the newer holsets (journal) spool faster than their BB garrett equivelents... go figure...