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Honestly, as awesome that would sound like as a idea, it just wouldn't work design-wise.
Remember that Water Arcanine rendition of that supposed leaker? How would the waves in his paws even make sense in his design? He doesn't have legitimate fire sprouting from him, why would he just suddenly sprout waves from behind his paws when the most we'd get is a blue coloured Arcanine?
Jesus, take a look at Vulpix to realize what we're talking about here. Arcanine's design would be similar in THAT kind of aspect, his fur mane might have changed with a fluffier look, not just shove waves or water effects in him when he never had any fire in his body to begin with to replace with waves.
Of course, this is all just the way I see it.