Hello Tailstoride,
Charging Li-Ion cells above 4.200 volts results in overcharging the cell. There is also some indication that very low current charging when the voltage is at 4.200 volts or higher can damage the cell. This is why there is such a tight control on the upper voltage limit and why the current should be shut off when it drops to a low value.
Overcharging damages the cell and reduces the cycle life of the cell.
This damage results in reduced capacity of the cell, and higher internal resistance of the cell.
Higher internal resistance results in a larger voltage drop under load. This voltage drop works both ways. When you apply a load, the voltage of an aged cell will drop further than that of a healthy cell. Also, when charging, a healthy cell will remain at the voltage it was charged to, where an aged cells voltage will drop.
A general rule of thumb is that when the cell is fully charged, removed from the charger and left to sit for around 10 - 15 minutes, its voltage should be over 4.0 volts. If it drops below 4.0 volts (this assumes you are charging to 4.200 volts) it is time to recycle the cell.
Tom