It's always been known to me that a super conductive thermal paste like arctic silver for example will result in too much heat being retained in the CPU.
Energy flows from regions of high temperature to low temperature. If you stick thermal paste on a cpu that is generating heat, the thermal paste isn't going to suck up the heat and not release it if there is a heat sink sitting on the other side of the thermal paste that is cooler. One would expect the heat sink to be cooler because it is going to have a side with fins (to increase the surface area) that is exposed to the air. The only way heat is not going to flow from the cpu -> thermal paste -> heat sink -> air is if the air is at the same or greater temperature as the heat sink. This is basically the second law of thermodynamics.
John, I just assumed that metal-to-metal contact was an inherently more efficient way to transfer heat...
In theory metal to metal is good because metal is generally a good conductor of heat. If this was sufficient then no thermal paste would be used at all. However, you cannot make two pieces of metal perfectly smooth. No matter how hard you try you'll have a small gap between the two. +Note this is the same principle of double pane windows in a house where you
want a gap of stagnant air to prevent heat from leaving in the winter and entering in the summer+. When the thermal paste is applied most heat sinks are then placed on top of the cpu and some form of pressure is used to hold them on. The thermal paste normally isn't viscous enough to provide resistance and hold the two pieces of metal apart (cpu and heat sink). So basically the thermal past just fills in the gaps.
The pressure of the heat sink will force any excess thermal paste out along the edges. It is possible that this can squirt out the side and then somehow get on top of the heat sink (this is the only case were I can see it causing problems) and prevent heat from leaving due to convective heat transfer along the surface -- it fills in the fins on the surface, reducing the surface area and the rate of heat transfer to the air. We're talking a huge amount of excess here and it would probably end up slathered all along the inside of the laptop as well.