I think Intel's 65 nm netburst products are basically dumb shrinks of the Prescott microarchitecture with little or no improvements. As such they share the same deficiencies, somewhat ameliorated by the positive physical effects of the shrink. They are smaller and less costly to manufacture and help Intel free up 90 nm for other uses but aren't otherwise interesting.
These products are basically placeholders until NGA core based products are rolled out starting later this year. The heat issue is not trivial for servers but certainly isn't the overwhelming issue some make it out to be either. Other- wise Banias and Dothan would have established a far larger presence in servers over the past few years than they did.