
In order to meet strict EPA regs fuel burn has to be carefully controlled. Hence EFI, electronic ignition etc. Controlling engine temperature helps and it is easier to control water temp with a radiator and thermostat than an air cooled engine. Going water cooled makes sense.
I assume the EPA is dealing with bikes the way they did with cars: the manufacturer is responsible for meeting the regs for 50K miles. The manufacturer's solution is to make it tougher for the owner to make changes that would impact emissions.