Fears of corrosion due to left over suds aren't completely irrational. In my experience most likely where there is little clearance and little ventilation so the water content doesn't evaporate from under the oil film allowing corrosion to occur.
For example my Smart & Brown 1024 has a couple or three square inches of corrosion pits on the flat portion of the bed behind the front Vee ways. Clearance between saddle and bed is maybe 20 thou in that area over what appears to be something like 10 to 20 square inches. After using flood coolant you need to work quite hard to get all the coolant wiped off the bed in that area. Usually takes 5 or 6 passes of the saddle to get it all swept out wiping up after each pass. Having cleaned off I always anoint with way oil to help keep things clean. Not an issue where the saddle runs because the 1024 has an efficient and effective pump system feeding from the apron. If its as good at the lubrication bit as it is at the apron emptying task its an excellent system.
I use Rocol Ultracut synthetic at the specified lowest concentration as a coolant. Seems to last forever without going off in the tank. For my use lubrication is more important than cooling so I have Bijur spranymist systems on the machines too. Main problem with those is getting them turned down to reliably deliver the correct, tiny, output. I'm certain most users set output of mist systems far too high hence the fug'n smell issues. Proper level is barely enough to put at wet stain on ordinary copier paper after a minute or so. Even that tiny amount is very effective. Need to regularly clean collets and chuck jaws because the build up of synthetic lubricant seriously reduces grip.
I generally work dry at 50 thou / 1mm roughing cuts and 20 thou / 0.5 mm finishing which keeps down the mess and seriously reduces the hassle of dealing with swarf'n chips.
Clive.