Hmm, difficult one...
Armin runs air-air also and his intercooler is inside the engine bay AND runs trackdays (vids are all over this forum), so it IS possible.
The extremely quick action respons of the outside air-air version would be hard to beat wrt temps and low temps is what keeps our old design aircooled engines alive. As you have a jap 16V OHC watercooled engine, higher temps may not be as knock hazardous as with our head design, but the hp gains will always be with the solution with the lowest intake temps...
Choose your poison