The die is the little piece of semiconductor inside that emits the light.
The K2 still needs it's heatsinking. At it's drive level, it needs it more. If you cut back on the heatsinking, the die temp will rapidly rise, resulting in reduced light output.
If you don't heatsink it, sure, you can run the die up at 185C, but the light output will drop dramatically.
The great thing about the K2, is it's internal thermal resistance is reduced to 9C/W. This helps a person keep the die slightly cooler. The Luxeon III was 13 C/W. If one were to run both at 4W, the K2's die would be 16 degrees C cooler.
If you don't keep the K2 cool, and you were using the 140 lumen V bin, at let the die rise to 185C, you'd be looking at only 91 lumens for it's output. So it is still important, in the end.
The K2 parts so far have had a rather high forward voltage (voltage across the LED), and as such, when putting say, 1500mA thru them, you end up with nearly 6.5W of heat you have to get rid of. If the forward voltage had been kept lower, the total amount of heat would be less.
Hopefully the production parts will have lower forward voltages, as many of the samples folks have been getting have been on the high end of the scale.
Why is forward voltage important?
Forward Voltage * Current = Watts (heat)