The water runs front to back and because the jacket doesn't pass between the cylinders, it creates pockets where at certain flow rates, air/steam can collect. The steam holes just let the air pass up to the head and leave the block full of water for uniform cooling.(no hot spots) The steam holes are not part of the cooling due to any water that may pass through them, only for the air they let escape. On my 400 based sbc I use a thermostat and stainless marine crossover with bypass for the exhaust and have had no issues because of the siamesed bores.