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Although, I think one of us messed up: siphons should cost LESS than the well, to counter the fact that they need real water. If this isn't the case, I need to fix it in the next patch.
Also, the Wells are more susceptible to pollution
If you are open to tweak suggestions I'd recommend communicating the intent better, namely, making wells cost more to build and operate. Furthermore, I'd go so far as to say that siphons should be ~50% more cost-effective than wells.
As to your 1 per year, but free example.. It's just like I say to those "but these overpriced supplements absorb better!" people: I'll just take more of my 'poorly absorbing', but more cost-effective pill then!
A single siphon can perfectly meet the needs of three farms, whereas it would take 1.5 pumps to meet the demand. You absolutely could build two pumps and set one to 50% efficiency, but you still require two buildings to meet the supply. It may be cheaper per unit, but it adds complexity to the calculations and requires more land space and infrastructure to support two water producers.
For some people, there are factors other than cost per unit that determine "the winner" (or "the right choice"). Convenience, aesthetics, connectivity, the terrain ...