As well as any problems due to shorting and corrosion mentioned by airspirit above, there is one huge fundamental flaw with that design. The peltier is going to be chilling the whole block down to sub zero. In effect the block will be sucking energy out of the coolant, drawing out round to the cold side of the pelt and then pumping it straight back in again.
Now as it is, pelts run at around 5-8% efficiency and this is gonna make it a lot worse.
The idea with having a seperate cold plate is to insulate it so that the only energy the peltier can pump is coming from the core itself.
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