A very useful and interesting post. It looks like the Core i7 displays exactly the same behaviour as previous Macs. My 2009 C2D 13" does exactly the same thing. I have discussed with other posters on here with various models and they mostly (all?) show the same thing.
The Intel datasheets more or less say "don't exceed 105 C; preferably design the system to sit at 95 C max". The CPU will throttle at 105 C to keep itself below this temperature. At 125 C it will shut down. I can't remember the exact wording. Apple seems to use these words exactly and has designed a cooling fan algorithm which allows the CPU to go right up to 105 C, but only for a couple of minutes, then the fans ramp up to bring it down to about 95 C.
I guess Apple's idea is that most high CPU loads are transient - no point in ramping the fans up as in most cases the CPU will go idle again very quickly.
I think that the temperature labelled "CPU" on your charts is the CPU heatsink. And again it shows exactly the same behaviour as other Macs I've seen:- at idle the CPU heatsink is about 5 C cooler than the CPU die; at full load it's about 25 C cooler than the CPU die. My C2D shows almost identical numbers.
There's some debate on these forums about whether Apple uses the heatsink temp or the CPU temp to control the fans. I'm firmly convinced it's the latter. The fact that all portable Macs seem to show this same 105 C / 95 C behaviour and it lines up exactly with the Intel specs is what convinces me.
Also there's some debate about the quality of Apple's thermal paste application. I don't know about its absolute quality, but its consistency from Mac to Mac is remarkable - the 5 C idle / 25 C full load temperature difference is very consistent from Mac to Mac.
I note also that you see a tiny bit of CPU throttling when the CPU is at max just before the fans kick in. This drives some Mac users to apoplexy. Apple's cooling algorithm isn't perfect, the CPU is having to do a tiny bit of internal housekeeping to keep its temperature safe. That's the first time I've seen it confirmed that this actually goes on. Of course it only happens for a minute or so, then the fans keep the CPU nice and cool
Your cooler does seem to have helped the fan a bit, it's running at 3500 vs 4000 in the two tests. Some difference, whether it's "worth" it I guess is a matter of personal preference.
Thanks again!