By that analogy, you imply that the i7 is 35% faster than the i5 (95/70 = 35). That's only occasionally true, as any real-world benchmark shows. Many tasks are only ~7% faster with the i7 (that's the clock speed difference). Any workload that pegs the CPU to its max frequency (e.g. coding, compiling) will consume more watts on the i7, because the jump from 4.2 GHz to 4.5 GHz is really inefficient. Effective hyperthreading also produces more heat.
If you have a workload that does not peg the CPU to 100% (e.g. real-time audio stuff), I agree that the i7 may be a little bit cooler. Mostly because it's likely to be a better quality chip, and can run at a slightly lower voltage at each frequency. However, if the CPU isn't producing enough heat to spin up the fans, I don't care if my i5 draws 35W and the i7 draws 32W.
My workload is mostly the former case – my CPU is either at 100% or 0%. I'd rather wait 10% longer and have a CPU that produces 25% less heat and doesn't rev the fans up.
If you have an application that loads the CPUs in the same manner it will behave differently on both CPUs.
What this means? Core i5 will be 90% of the time loaded around 95% on all cores, and heat up to the max. Core i7 will hover around 60-70%, and still have room for more work to do, and also will be cooler to run, because it is not fully loaded.
Real world benchmarks have opened peoples eyes about this. The problem which you do not understand is that Software matures and over time, your Core i5 will get much slower than Core i7, because of lack of Hyper Threading. Get as many cores and threads as possible for particular price point. I "like" when people say about future proofing their expensive computers, and then get away with Quad Core/Quad Thread CPU, because today its not important to have more.
Paradigm has shifted. Ryzen has brought 8 cores to mainstream and there will be much more software optimized for high core count scenarios. Nobody optimized for those scenarios before, because Intel was enjoying their dominance, and offered only 4 cores as mainstream. This is the reason for paradigm shift.
Lastly. Your iMac will rev the fans regardless of the thermal output you have. Why? Because fan spinning is caused by CPU temperatures, and you will always get it heat up to 90 degrees in seconds after loading it up.
In essence. You will not see any benefit of going with lower power TDP CPU, fans ALWAYS will ramp up under load, but your iMac will get old much faster than Core i7 based will.