For what it's worth, I've gone ahead and picked up the m5/512 and have been putting it through its paces over the last day or so. It has performed really impressively. Compared to the 1.3ghz version I had from the original release, it handles everything I do much better. I honestly suspect it has more to do with the boosts in the GPU and SSD performance than the CPU.
As for throttling, the Mac tells you outright when that happens. I was testing out the free version of World of Warcraft just to see where the graphics would get you, and with the recommended settings after about 5 minutes it throttled. It popped up a notification which said the app most likely causing the slowdown. But honestly, even with throttling going on, WOW ran fine for single player play. I could also play TF2 on lowest settings without throttling kicking in, or at least, without kicking in enough for the machine to warn me.
I realize the m7 is only $150 more but, I don't see any reason to spend that money. It isn't going to put you over any performance thresholds. The m5 is fast enough, and if the trend of behaviors matches between m5:m7::i5:i7 then you can expect lower battery life and quicker overheating with the m7 that ultimately reduces the value depending on how you utilize that hardware.
So I put that $150 towards a nice new bag and the requisite USB-C AV adapter I will probably never use (but feel the need to have around just in case.)