Tank it is, liquid cooled it is not.
The problem would be getting enough cooling into the cylinder liners. Particularly 2 and 3.
The way it's designed, the aluminum should run significantly cooler than the optimum cylinder temperature and the steel liner should moderate the two differences. Two cold, and the piston can sieze inside the bore. Too hot and oil begins to coke and ruins the rings or worse aluminum begins to melt to the bore. The trick for air cooled engine is getting the engine to run at a given power output at the widest range of ambient temperatures. Engine designers want enough cooling capacity that it can run in the summer in phoenix but they also try to make it run in the winter in detroit. It's a trade-off in performance for a wide-range of operation.
Turbo charging (or any sort of forced induction for that matter) generates heat. Those pesky laws of thermodynamics. Anytime you compress anything, you heat it up. Add to that the fact that when you add more air you also have to add more fuel (which makes the fire even hotter) and add to that the increased compression ratio makes the flame front more uniform and combusts a great portion of the fuel that enters the cylinder...
The earliest trick to keep off heat problems was to cool the top half of the bore and the head with something that has the ability to conduct more heat faster. Coolant can absorb exponentially more heat than air for the same volume. The other advantage that a liquid cooled engine has over a air-cooled engine is a thermostat. They engine builders could design a cooling capacity FAR greater than the actual need of the engine in summer in phoenix but then use the thermostat to control how much hot coolant goes out and how much cold coolant comes back in. So if you want to run in detroit in the thermostat just closes off the radiator and the engine still runs at the perfect temperature.
Even with liquid cooling, once you are producing a certain amount of power inside of a certain size bore you run afoul again with heat problems. At a certain point you overwhelm the ability of the steel liner to pass heat from the face of the piston into the cooling fins or coolant. To make matters worse, as the crown of the piston begins to heat up and unburnt carbon begins to be precombustion ignition points and you start to get a knock problem which makes the heating issue even worse as the burning fuel spends more time in the cylinder in contact with the piston and heats it up even more.
That's the reason they designed Nikasil liners and the power went up accordingly. The engine builders were no longer hampered by steel's relatively low thermal conductivity. The ability of siliconized aluminum to pass off piston heat is far greater than a steel liner. With the ability to get more heat out of the motor faster, they were able to increase the power output without significantly decreasing piston life.