Of course, it definitely depends on the system you use. I didn't have a full system with water and radiators like you but I had the latest and greatest of fireplaces with glass door, vents on the chimney to spread the hot air etc. Still yours is more efficient. However, nice as fire is to watch, even to listen to, I doubt I'll ever use one again even if the place I live in has one. Even that brand new high end fireplace was leaving a bit of smoke in the house, even with its door closed, even though it had its own air intake. You can't see that smoke, you can only smell it sometimes a little bit (and depending on the wood it can be cool) but if you observe your house closer you'll realise it is around therefore ending up in your lungs which is no good.
P.S. As far as my English go it is insulation and not isolation when it comes to buildings and objects in general but a native speaker or someone with more time than I have now can cross check it and confirm it or not. Enjoy burning firewood!
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