I think water cooling is more effort than it's worth, as you still have fans in place. If you want a dead silent system, then a mineral oil tank is the better option. If you just want something quieter than a PS3/360S, you can do that pretty easily with air. Remember, heat is fine, as long as it's not escalating.
Something like the integrated cooler you linked to really has no advantages over a basic "tower" style CPU cooler with heatpipes that exhausts towards the rear of the case instead of downward toward the motherboard. In fact, there is a distinct disadvantage as you are adding complicating the design with additional moving parts. More parts means more opportunity for failure.
Stick with air. Follow good airflow theory. Use the appropriate number of fans.
Looking at your case, I question your airflow. Primarily I am sad that your PSU is mounted all the way at the bottom. The 120mm fan on the bottom of the PSU is normally great in guiding airflow. If you flip the fan around then it brings in outside air blows it toward your CPU, the CPU fan exhausts, and the 120mm on the rear of the case pulls air out the back. Even by default when the PSU exhausts as well, it creates negative pressure for CPU exhaust to evacuate in to more quickly.
Is the 120mm on the rear set to exhaust? Is it blowing air toward the left in that picture out the back? Also, your CPU cooler is either backwards, or the fan is mounted on the wrong side. The fan should be located on the right-hand side in that picture, blowing toward the heatsink, and therefore toward the exhausting fan. That's a pretty big problem.
If the two fans are currently fighting eachother as I think they are, that is creating a pretty nasty chunk of negative pressure between them. Negative pressure means they run noisier and there is less air to pull from in order to do their cooling. If the HSF is blowing the correct way toward the rear of the case, then it is pulling a bunch of air from around the heatsink as well as from the heatsink directly. Focusing the air toward the heatsink as I described will push roughly twice as much air over that aluminum. Flipping the rear exhaust fan around to blow inward is not the correct solution as that will just result in case ambient temperature rising making your GPU fan work harder.
If flipping that HSF around doesn't drop temperatures for you, then you can look at mounting a 120mm directly above your RAM slots to bring in fresh air for the CPU cooler to feed from.
Also, that motherboard power cable that is running over the GPU. You should have enough room between your PCIE 16x slot that the GPU sits in and the back of the case to route that cable through so it sits more flush with the case and gets out of the way of your fans.Edited by darklordjames - 10/1/12 at 1:12pm