Yeah- air cooled. Some later model boxers (which is what that engine configuration is called) can be oil cooled. There's still a big controversy, also, about the "flying bricks", which is what the K bikes got nicknamed because that's what they look like. Beemer folks are fairly varied, but there is a good sized group that is extremely conservative and don't believe anything but original-style boxers are real BMWs.
Between my brother and I, we have owned an R69S, R75 (x2) R100RS and K100RT. I only had the K100RT for a couple of years but I rode the wheels off it, then sold it to buy the 1979 R100RS, which was a disaster.
I spent a fortune on the rebuild (pre-internet) and just couldn't bring myself to like it. I kept it for 12 years out of spite, because by the time I had the engine and tranny professionally rebuilt, replaced all three discs, upgraded the crap front ATE calipers with Brembo's, replaced the front forks to accommodate the brembo calipers, tires, shocks, etc etc etc, the thing owed me over $12000.00, which was more than twice what I paid for it. I eventually sold it for $4000.00 two years ago, and don't miss it a bit.
I'm about to buy a very nice used K1100LT and am more than happy to sell a couple of my CB750's and Suzuki GS bikes to make room for it in myn garage. As much as I love my CB750's, there's not much out there that compares to BMW's K bikes (or the new boxers) for long distance high speed touring, although a 'wing would probably come close. The old R69S and R75's were beautiful bikes with really easy to love flexible engines, but the R100's weren't a great design, and were a bit rough compared to the smaller bikes.
The R100RS fairing tends to amplify engine noises and hold the heat in in summer, and the bars are too narrow and low. High frequency vibrations over 4000 RPM will make your hands go to sleep, and if you're tall, the wind noise as the wind is deflected from the fairing screen into your helmet will drive you insane. Beautiful looking bike for sure, but all in all, I'd much prefer a K bike, they've been around for over 20 years now, and have proved to be technically far superior machines to the old boxers, probably only lacking somewhat in "charisma". A bit like the Harley V Rod when compared to the more traditional Hogleys. Just my humble opinion, of course. Cheers, Terry.