I have been following this thread for weeks now and still hesitating to buy or not to buy the current late 2014 iMac 5K (especially I need it for the Windows gaming machine via bootcamp as well, and the 105-107 C temps with tremendous throthling issue is just a major turnoff with the new iMac - and makes me to wait for the possible next 2015 model).
Debating about should the Apple have chosen 980M over m295X is just a speculation - and the reasons for the selection has been stated numerous times. The AMD is the GPU provider in Apple products for now, and possibly not changing that decesion with 2015 model either.
But the real issue here is that Apple should have foreseen the thermal output of AMD's m295X and redesign the cooling system of iMac to properly handle the heat output that chip (which thermal output may lie somewhere between 120-150W).
It is just normal that mid range desktop GPU cards (comparable to high end mobile GPU) that output 120-150W of TDP have 6-8 heatpipes and huge heat sinks with 2-3 fans to output the heat.
For example here you can see the Asus version of the 285x desktop GPU that should be exactly comparable to m295X:
http://www.pcper.com/news/Graphics-Cards/AMD-Announces-Radeon-R9-285X-and-R9-285-Graphics-Card
These cards have huge thick heat sinks that may be as long as the card (nearly 30cm) and they can take the heat and dissapate that keeping the GPU ca. 80C on full load for hours.
What Apple did here was just fitted the i7 outputting 95-105W plus m295X outputting something like 120-130W (totalling well over 200W TPD) to a single small heatsink that utilizes a single (1) heatpipe from CPU and a single heatpipe (1) from GPU. See it for yourself from the iFixit teardown pictures:
https://www.ifixit.com/Guide/iMac+Intel+27-Inch+Retina+5K+Display+Heat+Sink+Replacement/30523
(Just scroll down the page to the bottom on steps 59 and 60).
What the "F" is that??! There is just a tiny heatsink that tries to dissipate the heat generated from CPU and GPU. A single puny fan whirling 2800 rpm and sucking hot air from inside of the iMac, already cramped air space.
This is not something that can be fixed replacing thermal paste with proper silver compound (or what even crazier ideas suggests, with some magical driver updates). This is also not a matter of Windows or OS X. This is a matter of hardware. It occures also on OS X if GPU is pushed on full load.
This is just madness from Apple, that they did not redesigned the the heat sink system whole over for the needs of the new CPU and GPU. There should have been at least 3 proper heat pipes from CPU and 3 proper heat pipes from GPU and bigger heat sink and fan to cool down these components properly.
When you look that cooling system there is absolutely no question about is this sufficient for the chosen components (i7 + m295X). It is not. And it's absolutely no wonder that GPU heat ramps up to 105 C in just a couple of tens seconds on full load test. Just a single heat pipe is not enough to dissipate the heat to the heatsink, which is also undersized.
This is something beyond repair untill Apple recalls all the 1gen iMac 5k's and replaces the heat sinks with redesigned models (if even possible considering the thickness of the iMac's). Why I am not believing that this would happen.
Oh Apple, why did you failed us (again)?