I've never understood why people worry about the case of their iMac feeling too hot to the touch? What are people doing touching it that they need to worry, it's not like it's a laptop sitting on your lap!
I trust the Apple engineers to know enough (a heck of a lot more than me at least) to design the computer with a proper case, adequate cooling and enough fail-safes to protect the system should it ever overheat.
Obviously you didn't read what I've written...The AppleCare people told me there was a problem with mine...they told me not to use it, to unplug it immediately, pack it up, and bring it back. They were going to test it but just decided to do an exchange. The Apple store Genius told me that there have in fact been some issues with some units having the case get too hot. He witnessed it first hand in the store with some of the demo units on the floor. He said yes that the cases do get quite warm and are supposed too but they should not get as hot as mine which got hot enough to cause injury. Mine reached an excessive external temp of 150 F (65.556 C) which is hot enough to burn the skin on the inside of my arm or that of a child.
The new one is NOT doing that and has much cooler internal temps according to the istat and this one has not locked up or frozen at all like the other one did.
Even the best product can have a lemon here and there, and I think I had a lemon...maybe it got dropped sometime in the manufacturing /packing process, or maybe the power supply was not installed correctly, or some component was defective in some way...who knows. I'm not saying that iMac is bad or I wouldn't have exchanged it for another. I am only saying that mine (and obviously others) had issues with some of them.
Obviously Apple acknowledged the issue or they wouldn't have exchanged it no questions. They did not charge a restocking fee or anything either. They even transferred all the data from one to the other for me. (Gotta love Apple service.) I've had awesome experiences dealing with Apple, the Apple Stores, and Apple Care and I love my PowerPC G5...I hope my son has as much satisfaction with his iMac as I do with my PowerPC G5.