I've had a water-source (what geothermal used to be called) heat pump in my house since its construction in 1986. It's still ticking away, and has saved gobs of money over its life. I'm currently researching some on replacements, as it may be coming to the end of its useful time....
When mine was installed, it was originally going to be a pump and dump system, but I really didn't feel good about that, for all the reasons stated already. The designers of the system, a couple of NH engineers, then came up with an elegant solution:
1. They created a manifold with an on-site PVC (?) welder that split the 2" line coming from the house into two 3/4" loops, with welded return bends on the ends of each.
2. They fashioned a large wire spool (4' diameter) on a stand so it could rotate.
3. Using the spool, they wound up my well pipe, with pump on the end, and removed all the plastic spacers I had so carefully positioned when I put it in.
4. They then fed the four 3/4" lines (2 loops) back down the well hole (std. 6"), along with the pump and water line. The loops effectively replaced the plastic spacers. They weren't able to get it back down as far as it had been, but still got about 200' of loop into the well (with the water pump below that); static's at 80'.
5. Welded up the manifold to the two loops, connected to the 2" lines going back into the house, installed two Grundfos circulators in series, and I then had an 8-1/2 gpm recirculating loop.


All lines were 8' or more below the surface, so it's all just water, no need for A-F.
As it was a closed system, the water in the loop was filtered well and then treated. It's hooked up to a valve inside so I can replace and/or flush the loop when needed. Twenty-three years and counting.... Still has the original Grundfos pumps, still runs @ 8.5gpm with a 6 degree+/- TD on the loop. I do augment with a wood stove; we have the coldest tap water in the state, I think, in the winter!
It ain't real pretty sitting in my basement, but it sure does work. I envy you guys who have the newer systems-- mine uses R-22 and has a 3.25 COP; I'm drooling over the new ones with a COP of 5!!
In all those years, I've replaced both TXVs, all 3 check-valves ("cheap" Singers/Gemlines), one reversing valve, and repaired a couple of leaks. Not bad, methinks. Oh- it also makes hot water... and in the summer can take house heat and put it directly into DHW.

Clever, those NH engineers.