It would make more hp because you are bringing down the HIGH temps that a blaster runs at. As for the dt200, it makes 30hp because when the power valve is open it has a higher more aggressive port timing on the exhaust. You don't need a power valve to do that. Just port the motor/ raise the exhaust and you will hit the 30 hp with no problem. The water cooled cylinder def. helps things out for sure. I would be willing to bet you would gain hp on a motor that had some work done to it. On a bone stock motor you may see a little, but on one that was ported, pipe and filter you would see an improvment in power because you could have a more aggresive jetting setup and add more timing do to the cooler running motor.
As for add to much weight, the gains would be worth it. The only problem I see with your project is the elect, water pump. You would more than likely have to go to a high output stator like a ricky stator to run the pump. Even then I'm not a big fan of the elec. pump. I was going to do this years ago, but decided not to, because our bikes run on methanol which aids in cooling in itself. BUT if I were going to do it, I would track down the peices on the internet (ebay or forums) to put the water pump/gear back into the stock side cover. The pump is ran off of the primary drive gear on the crank so everthing is in place. The stock cover is made with the pump housing in the cover so it would be as simple as adding the shaft, gear to run the impellar and the impellar itself. I'm not so sure that I couldn't order the parts through my oem parts supply dealer. Like I said, I worked it all out a few years ago, but never messed around with it because I run methanol. If it weren't for that I would do it.
Good idea and good luck with the project.
I'm not sure were you are located, but I'd be willing to dyno your bike before and after to show the gains you WOULD make from running the water cooled cylinder.
Craig