Both of you are correct. You need lubrication, so a dam does okay, but fresh water is better. It's the same for cutting tile. A wet saw with a closed compartment for water is fine, but a wet saw with a pump that you can place into a fresh water source like a 5 gallon bucket of clean water works much better and makes nicer cuts. Same deal. I've used both.
As for the demo tomorrow, we would still need an old tank that someone doesn't want anymore. I don't feel comfortable doing a demo on another person's tank. We wouldn't have to go outside to do the demo either unless we aren't allowed to get the floor wet. Just let me know ahead of time so I can bring some tools.
Also, on the topic of thick vs thin glass, both theories are correct. People tend to be much more careful with thin glass, and it does vibrate a bunch, making it much harder to drill. Try drilling a 1/4 inch sheet of plywood and then drill a 5 in x 6 inch post. The post is much "easier" to drill through and the bore is much cleaner.