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It keeps the turbo cooler, but the intake warmer, since the intake manifold and all the associated parts are sitting above the turbo, xover pipe and downpipe, baking.
The expected turbo lifetime on these cars is quite amazing, especially given that most owners don't use synthetic. But it is on the 'wrong' side of the car from a power/spool/etc perspective.
Both the intake and exhaust piping would be shorter if the turbo was on the exhaust side and all the rubber bits under the hood would last a lot longer.
A reliable turbocharger on an aircooled car is going to be a difficult proposition because water cooling a turbo tends to give it much better longevity.
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Stock 1988 951, TT aero wipers
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