Yes, it's a fantastic machine and I can keep my bits sharp very easily, I have tried grinding them myself, but that is an art I am not good at.
Yes it is good enough to drill the clear acrylic without water although if it is easy to introduce water it will be quicker. When I did mine I drilled in about 1/2" took out the drill and felt the end, it was cool. I went in another 1/2" and out again, it was getting warm, but still cool enough. It is the next inch that is the problem so it is better to do 1/4" and withdraw and keep doing that until the end. When the bit is in quite deep it is harder for the swarf to travel down the flutes and that is when it heats up.
If you want to send me some bits I will put a split point on them for you, I don't have any spare bits or I would send some to you, but as I say send me some from about 4mm upto 12mm (maybe 13mm) and you can try them and just see the difference how cool they are.
Peter