I agree with most everything you said (pretty much fact so no argument from me). Bottomline is Prescott is a bad design, compared to what it could be. Performance is poor, in comparison to Northwood, for example.
The thermal control of the part is an issue as it applies to the surrounding parts. Sure, the CPU itself can run insanely hot (comparatively speaking), but when you put a motherboard on a bench, with an HSF mounted on the CPU, and the neoprene rubber block on the backside of the motherboard gets welded to the motherboard from the heat of the CPU, that is a problem.
Epoxy can withstand a great deal of heat, but the surrounding capacitors and resistors will suffer premature failure from heat exposure as it stands right now.
It's just not a good part. Even if the thermal issues were solved, the performance is just not there. Of course, some of the handicap has to be put off on the use of DDR2 memory. Makes for good marketing as the numbers are higher, but the latencies kill any performance increase you could have.
Then there is the heat problem with DDR2 memory.
All this heat translates from power usage. The amount of power required for a Prescott based system is nuts, quite frankly.
I am just disappointed MD. Intel had a good base design in Northwood and it was faster than the AMD counterpart as well, near the top end. Prescott and the use of DDR2 ram is a giant step backwards in many areas.
I have heard rumblings about Intel working on a new part (code name starts with a 'C' if I recall) which should alleviate the thermal issues. I anxiously await it.