hi.
That's right. Submergeable pump will add every bit of energy it use to the water as heat. If the Mag12 is 110Watt, it will be exactly like a 110W heater on 24/7 in the water.
For external pump, a fraction of the energy is dissipated to the air directly, and the heating issue will not be as bad. It will still be a problem for a tank with small water volumn. For example, if a pump heat up a 50 gal system 5 degree, it will heat up a 25 gal system 10 degree.
It is also interesting to note that the more efficient the pump, the greater portion of its energy consumption will goes toward heating the water via energy conversion from kinetic->heat. Sounds like a paradox, but it is true. In another words, if two external pumps use 100W, and one is more efficient than the other, one is putting 50W of energy into moving the water, and 50W heating the air. The more efficient pump will put 70W heating/moving the water, and 30W heating the air.