Bob,
You're right. I used water based, and specifically Target Coatings SC9000, and it did soften and cloud if left on a wet carpet overnight, or in a tub of water overnight. But it never did that while fishing, and it was the only top coat I ever found that didn't dim metallic and pearl colors, or affect the color scheme in any way. A big thank you to Husky for turning me on to it.
I have cranks that I coated three years ago that are still working, and still look great.
The Target Coatings EM9300, their exterior version of a water based urethane, wasn't super clear (SC) like the 9000, but it is bullet proof. I used it on salt water baits, and it never failed.
But I am, first and foremost, all about shortening my lure building process, so I can maximize my fishing time, so I have switched to Solarez gloss almost exclusively. It is super durable, and I can coat and cure a bait in three minutes and fish it immediately.
I can dip coat a lure, including the bill, hang it by the line tie, let it drip back into the dip jar until it stops, wipe off whatever excess is on the bottom the lure back into the jar or with a paper towel, and then cure it. Hanging it that way insures that the amount of clear on the bill is as thin as possible, so it doesn't take away from the action of the lure, and I still get a really durable bait.