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Definitely a balance... would you rather your phone slows down somewhat and lasts all day or would you rather it's dead at 11AM in the morning because it's been burning away with the CPU clocked up to its maximum clock setting?
Androids all try to manage this dynamically too...
And it also helps avoid battery damage that can cause fires.
I had a battery failure on a macbook pro at work a couple months ago.. it didn't burst & burn but it was well on it's way and was pretty scary.. it bent the metal case of the laptop like it was a tin can.
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