You might get ahold of Vance Harlow's book on reg repair (airspeed press) or just take a long look at some 1st stage schematics to get an idea of the difference between piston and diaphragm design. Both designs have an ambient chamber where water goes to allow the reg's IP to increase with depth. The only difference is that on a piston reg, there is an o-ring that seals off the dry chambers, and since a piston shaft goes through it, there is a tiny length of piston shaft that is alternately in the ambient chamber, exposed, and in the HP chamber, dry. This is not really a contamination problem, but can cause freezing in extremely cold water.
Traditionally piston regs have been "sealed" for cold water by filling this ambient chamber with grease that keeps the water off the piston shaft.
The bit about deliberately flooding the 1st stage, like if you had to switch 1st stages under water, is something different. The theory here is that the piston is more durable and can withstand the incompressible water passing through the HP area, into the IP chamber, and out to the 2nd stage.