Consider that the parts are binned at a die temperature that is much cooler than they would be in normal running conditions (25C die temp). Also remember they are binned at 700mA.
Even with a 25C ambient, and a perfect infinite heatsink, a Luxeon III ran at the 1000mA level, the die would rise to 85C. This could easily shift the Luxeon well outside of what it was binned at....then there is on top of that, how well it is actually heatsinked, and how well that heat is transferred into the air. Or for some of the small flashlights, you need a human hand to heatsink the heat away, but the human hand is 37C This would mean the die is now at 97C....
On top of this, if you are running at the 1000mA level, there is further shift on top of the 700mA binning level.