Phil, You explained it exactly the way I understand it. I think you are right on the money. Interesting about the Gaggia, maybe that's why Floz raves about his old one to me all the time.
Kingseven, You temp surf a singel boiler machine to get the water temp right *and* to make the steam last longer I think. You dont really temp surf a HX, rather draw water off it till the head cools down enough. The head in a HX gets hot beacuse most HX's have a thermosyphon system to circulate water from the boiler to the group head when idle. Eventually (after 15 minutes it's noticable) the grouphead temp approaches the temp of the boiler itself. So you draw off fresh water until the head is the right temp for a shot.
There is much experimentation here
The higher the pressure in the boiler, the faster the HX will heat up at idle. The lower the pressure, the worse the recovery time, and the les steam pressure available.
Interestingly enough, there are other mods for HX's to try and mitigate the effects of the thermosyphon whilst still keeping it's advantages. Most of these are releated to insulating the boiler and the HX piping so that the HX piping does not heat up so fast.
Pault, if you have a dual boiler Giotto, then PIDding it will not do much for you as Phil said. Buying yourself an accurate temp sensor and fitting it to a filter basket to profile your heating will help you to make better tasting espresso, but may make you look strange to anyone around. (My wife thinks I am nuts). Fiddleing with the PStat may tune the machine to a point where it works best for you.
Finally,... HX's work best when the pressure is high AND they are running all day long. Leave a commercial (not a machine with a dedicated brew boiler) idle for a while and it too will overheat such that you must run some water off to cool it down. At least that is my understanding, I've never played with a real commercial machine. Still looking for a good-dead-one.