Update on the horizontal nipples...
 
I finally ordered some from BYC'r Rich386. He quickly answered all my questions. I just installed them and so far here is what I notice between the vertical and horizontal nipple styles. Mind you this is with the nipples (vertical or horizontal) installed directly into the bucket (no extension tubes, etc.)
 
 
Vertical style PROS (photo of this style 
here):
keeps water clean
fill up a large bucket only occasionally rather than daily for our 12 birds
with an aquarium heater can be used to at least -9F
 
Vertical style CONS:
The nipples don't leak when not in use but leak quite a bit in use=wet/moldy bedding below the waterer
requires an aquarium heater to keep nipples from freezing rather than a more energy efficient birdbath or stock tank de-icer
can't set bucket on ground lest risk damaging nipples
requires a very specific size drill bit & teflon tape to insure proper fit and no leaks
 
 
Horizontal style PROS (photo of this style 
here):
same pros as the vertical with the bonus that I expect to be able to use my more energy efficient stock tank de-icer instead of the aquarium heater
installation uses standard bit sizes 3/8" or smaller and no teflon tape required (nipples self-seal with hand tightening)
best part is virtually NO LEAKS when in use as birds slurp up all the water instead of trying to drink from a "dripping faucet" as with the vertical nipples
can set the bucket directly on the ground even when full of water, can mount the waterer on blocks or can be hung
 
Horizontal style CONS:
Birds are slower to adopt to the new nipples since they are used to the vertical ones (both styles are red in color) but I expect this to be only temporary (similar results when I first introduced them to the vertical nipples)
cost is about 2x the cost of vertical ones.
 
 
So I see many additional benefits to the horizontal ones and the only real downside is the cost. For our small flock this isn't a big deal, but I can see how it would be if we had hundreds of chickens. Both styles seem very well constructed and should last years of use.
 
The only other comment is a bit of wash in terms of pros and cons. The vertical ones I think allow the birds to drink more water with less effort but also require them to crane their necks in awkward positions to do so. The horizontal ones allow them to drink in a more natural position but require frequent flicking of the metal lever to release the water. My hunch though on this last one is if they figure out how to hold the lever open while drinking a constant tiny stream of water, not yet sure if that is possible physically or if the birds are smart enough to work in tandem (one holds the lever to release water and the other drinks!) This is just speculation so far and I have little observation to say for sure, I'll update again later.