the only real difference is that each kernel has 7 preset "slots" that it is capable of throttling to. on a 1.0 the presets would be 250,400,500,600,700,900,1000. on a 1.2 they would be 250,500,700,900,1000,1100,1200.
i don't even worry about temperature any more, just use the setCPU profiles to throttle back to 800 mhz at 55 degrees C and you will be fine. as long as it is stable, and it gives you decent battery life, keep it!
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