Right, the energy lost can go into other things besides heat, and exit the system at other places besides the pump. An air cooled pump will not put much of that excess into the water for instance. It has nothing to do with what we pay on our utilities... never brought it up.
But there are other factors beyond just PF for efficiency, although it remains a huge one. So sure, a .8 pf might not mean that all 20% of the extra energy is going directly into the water... but lets say that with water cooled its like 80% of that. But then there are other things besides PF that contribute to pump efficiency... so its a wash in the end (with water cooled). The other reason for asking the pf is to see how hard the impeller is going to be on the pump. A lower power factor does mean the pump will heat up more, and when modding pumps for needlewheel use (unless DC), you dont want to end up with a VA that is beyond the original spec of the pump.
For instance, if your pump as a water only pump was 80 watts, and a pf of .8 (like an eheim 1260), then its VA (real power) is 100 watts. If you mod that pump for air and water, and your wattage drops down to 55 watts, sure, thats great for what you pay at the meter, and for that 1262, the pf is about .55 as well, so the VA is still 100 watts. Great... not too hard on the pump because the pump was designed to run at a real power rating of 100 watts.
But lets say it wasnt so great of a pump when modded as a needlewheel/meshwheel, and the RMS wattage was 55, but the PF dropped to .4... now the pump is operating at 138 real watts... 40 watts over spec. Depending on how well the pump was made, you could burn it up.
Thats why I ask for the PF and such on these Lagunas when modded. Dont want to end up with a pump that is really pulling over 200 real watts if the motor block wasnt designed for more than 150! It could be dangerous. Usually, its not a big deal, but with some of these threadwheel mods, the wattage is jumping back up (moving more water), but the PF stays low... so the pumps are running rather hot. The Sicce PSK 2500s are an example of this. I am suspect of their longevity as threadwheels.