I feel I should contribute a little to the actual performance of water based suds. Some theoretical work posted above has talked of the energy input not being sufficient to account for the evaporation of the water content.
Water- based fluids should normally be supplied to the tool/metal working point in a concentration range of oil concentrate 5-8% and should be mixed to form a stable emulsion. (There is some debate whether an oil in water emulsion or water in oil is formed.)
Having done some years work on water-based suds I had opportunities to investigate this problem, the temperatures at the cut are very high, much above the boiling point of the oil-water mix, the heat being carried away by the water component and the aerosol formed. The oil serves mainly as a lubricant as well as a film former inhibiting the instantaneous corrosion of the hot metal.
Of course the heating also occurs where non-water based coolants are employed but the physics are significantly different. The droplets are significantly larger and are also more stable and tend to recombine more easily thus re-converting from aerosol to liquid.
This is offered as a possible line of investigation, but I have found that it is quite involved needing a lot more data before coming to any meaningful conclusions.
Most of us will have our own thoughts and experiences and I am reminded of 'Horses for Courses'.
Jerry