You already seem to know enough to answer this yourself...
I do not intend to overclock.
If you don't intend to overclock ever (even after you start using it for gaming), then I think you should go with an air cooler.
Is liquid cooling way to much of an overkill for my needs. I know its more then is necessary. But will it negatively hurt to go with liquid cooling. Or would I get better performance out of an air cooled unit.
Yes, it is overkill. Will it hurt? No. However, if you plan on building/filling your water cooling system yourself, be very careful. I had one once that had a very slow leak that I couldn't see. A tiny droplet of water eventually hit the video card and... you know. There was a small stain on the PCI-E connector showing that water had been leaking for a while.