Chipgeek, I share your temperature concerns, but in many cases Ultrabooks have been lower temperature than SV laptops. I think the problem comes when you put the same 17W Ivy ULV processor in more aggressive convertible form factors, that the heat needs to go somewhere. This is especially true when you are running performance level apps for long duration.
According to the notebookcheck review of the XPS 12, the system running 3DMark06 in a loop dissipated up to 33W of power. That's compared to 11W in idle.
I think Haswell will help here. Using a 10W processor will directly benefit total system power. The idle power reductions will also help with battery life in these constrained form factors.
In terms of gaming, I think gaming developers need to meet half way here. In order to give the kind of performance of a discrete graphics device, you're looking at 30-50W of power (on the low end!), just to get the frame rates necessary to run games like Battlefield 3 at medium settings. Not even Intel can get that below 10W with just a single process node advantage.
Portable gaming systems have compromised a lot of performance in order to be "mobile", not to mention that iPad as well is quite meager, even by HD 4000 standards. Yet ISV's have done incredible work to develop games like Infinity Blade, which work quite well, given the limitations.
With the laptop space quickly moving to low power, I would think they'd want to optimize for the better graphics Intel can deliver in a ULV processor, which is still far better than what you can get in an iPad. We'll have to see if that's the case.