Yup, engine oil itself has to run above 100C to boil off all water condensation in crankcase. Thermal efficiency is better at higher-temps. Limit is materials durability.
Honda's working on some all-ceramic engine with no cooling system. Higher heat inside combustion-chamber and no losses to water-jacket. Would be awesome if it's 2-stroke as well, but Honda hates 2-strokes.
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