They are running cooler because Kawi detuned the twin with the CDI. This causes more heat build up than what would be normal if the motor was running at normal timing. The key and new CDI advances the timing to the point where its close to normal and thus lowering the temperature of the motor.

 

Olemanmoses, if you were truly running with retarded timing, you would have reduced your cooling needs by correcting the timing. If you advanced it further than it needed to be, you would be producing more heat too. I am not sure if your timing is too advanced or if your AF ratio is optimal. You would need to spend some time on a dyno (changing the key offsets) with the O2 meter and the EGT meters hooked up.

Note, oil has a much lower specific heat than water. It can't carry as much heat from the head to the rad. If the head cyl and block are hot, the cooled oil is going to heat up real easy (without reducing the engine temp as much) and the fan will run a lot. Your fan is always going to run a lot, IMO. especially if you are using more power. Obviously the faster you go, the more effective your cooling system.

Also, with a lower compression ratio, the precombustion, combustion and post combustion temps are reduced. However, there is reduced expansion during the power stroke and therefore you are getting more heat out of your tailpipe than you would if the comp ratio was higher. Although I think this factor contributes to increase engine heat, it is more than offset but the next factor (next paragraph). This is pure thermodynamics. At about 19000BTU/lb, gas always makes the same amount of heat, whether you get the power out of it or not. So, you have to be producing more heat per pound of fuel with that lower compression ratio.

Also, with lower compression, you have reduced volumetric efficiency (amount of air that can be sucked in). This means you can't burn as much fuel and that further reduces your need for cooling. A high compression motor can make a lot of heat, not because it is less thermodynamically effiicient (it is more efficient), but because it is more volumetrically efficient (more fuel and gas burned).

That is why they design air cooled motors with lower compression ratios. It helps them stay cool. Volkswagon used to use 7:1 and they also forced air through the oil cooler all the time because those air cooled motors had to haul a whole car. Some air cooled motors can be design with high compression ratios if they do not have as high of a duty cycle (like a porsche), or a motorcycle. The 360 has a hefty duty cycle so they kept the comp ratio lower.