If a PSU is 60% efficient, 40% of the load current is being dissipated as heat, in the PSU.
If a PSU is 60% efficient, that means for every 100 watts the load demands, the PSU must pull from the wall ~167 watts (167 x .6 = 100.2) to compensate and make up the difference. And that extra 67 is indeed wasted in the form of heat. The point is, the load (in this case, the computer or motherboard, CPU, GPU, RAM, drives, etc.) still gets its full 100W.
The PSU does not "drop" any wattage. A
quality 650W 80% efficient PSU that is fully loaded will still output 650W if that is the demand. But it will pull from the wall ~812 watts (812 x .8 = 649.6).
an 18awg wire is losing 6.385ohms
The cable drop is not visible to the PSU
Wires don't "lose" ohms (resistance). They add ohms to the circuit. As the length of the wire increases, the resistance (ohms) in the conductor (wire) will "increase" too. And that added resistance is indeed seen by the PSU as a slightly (very slightly) greater load.
So while it is true wires do "add" resistance, the wires/cables used for computer power supplies are not really long enough to be significant. However, the load will still need what the load demands. So if the cable adds a little resistance, the PSU will simply see that as a slightly larger load, and will compensate for it. The PSU does not know that added resistance (demand) is caused by the wires, but it still sees the added demand because that added resistance is just part of the total load put on the PSU.
Frankly, cable connectors present a significantly greater potential for more resistance than the wires themselves. A straight wire is just that, a straight wire. Assuming it is not damaged or kinked, it is going to have the lowest resistance possible through that conductor.
But when you have a connector in the middle of the cable somewhere (say on the PSU's housing) that wire is soldered to one end of the male pin. The male pin must make a solid "mechanical" connection to the female socket. And the another wire is soldered to the other end of the female connector. That's 3 points of potential added resistance (and potential failure) that otherwise would not be there. The solder joints could be "
cold", contaminated, or faulty in other ways. The "mechanical" connection (essential for a quality electrical connection) of the male and female parts of the connector could be loose, dirty, or otherwise improper and add resistance.
Those potential issues with cable connectors is one reason why many professionals don't like modular power supplies. They would rather the power connectors be directly connected to the tap or PCB connector point inside the PSU instead of going through a connector in the PSU case.