Are gen2 not ASICs as well?
They are, but hopefully not stone age ASICs

I means the current generation uses what? 7.5W per GH/s? Compare that to the competition rolling out ASICs @ 0.5 W per GH/s
Most miners buying AM hardware are residential miners. They can only pull so much power out of the wall before things break or people (flatmates, landlords, wife, etc) freak out due to heat, space & noise concerns. So if you want to sell hardware, energy consumption per GH/s does matter. A lot.
Immersion cooling for Gen1 hardware is just a band-aid. Moving to 22/28nm is the solution. If the competition can, why can't AM?
Hopefully AM is taking the long view of things. Bitcoin is here to stay and that means mining is going to continue for the next 20+ years (or hundreds, but let's not go there...)... a few months here or there in deployment is just a blip on the timescale. I am sure that this immersion cooling will come in handy with any generation of ASIC hardware in the future.
On an unrelated note... will