Glass is quartz and/or silica not silicon.

I can't read japanese, but I believe this [sharp.co.jp] is a picture of what the article talks about.

Here is the page translated to english [altavista.com].

Yahoo news [yahoo.com] has a picture of one.

Large Photo in Reuters [reuters.com].

The problem is the rate at which heat transfers in and out of glass. A heat source wrapped in glass will retain more heat because there is more of a resistance to heat flow.
Having a water medium will only serve to buffer the heat. Heat must escape somewhere. If you insulate water with more glass then the only effect of the water would be a longer time before the circuits overheat since the water only acts to store heat.
It is better to be able to siphon off heat directly from circuit elements, coating the glass with a better heat conductor than air, or reducing the impedence of the circuits.
By the way, having an Athlon in your system can very well boil the water (even with the applied pressure of the container).

Glass is quartz and/or silica not silicon.

Hmm, what gets 5s these days...

Quartz is silicon dioxide (SiO2), as opposed to pure silicon. It's like the difference between rust and iron.

Glass is classified as an amorphous solid. This is to say that glass is, in fact, a solid which does not have a regular or crystalline molecular structure. It is, nevertheless, a solid by classification, and as such can be said not to flow when subjected to everyday forces at everyday temperatures.

More information [ualberta.ca].

all liquids are crystals, it was proven a few months back.

I'm too lazy to look up a link, google should find more info if your interested.

I'm going to expand on this a little. I'm a ceramics person, so I'm actually qualified.

Glass is primarily SiO2 or "silica", but what we go around calling glass has plenty of additives. Most of what we call glass is actually soda-lime glass, so called because it contains ample ammounts of soda (Na2O) and lime (CaO). Those two ingredients help lower the melting point of SiO2 and make it a lot easier to process. Pyrex is a brand name for borosilicate glass and its composition allows it to be very strong and resistant to thermal shocks (this is why you can put Pyrex in the oven without worrying about it shattering). LCD glass is probably different alltogether.

Very pure amorphous SiO2 glass can be made, but it is much more expensive and is often sold as "fused silica" or "fused quartz".

True "quartz" is a crystalline (ordered) phase of SiO2, and it is not the only one. Crystoballite and tridymite are two other crystalline phases of quartz.

In any case, SiO2 is a dialectric, and not a semiconductor, so the computation being done in this story is all contained in the layers on top of the glass and not in the glass itself.