How a blocked heat sink cause damage to your laptop?

I have a 2 year old Dell Studio 1555 with 2.1 GHz T6500 Core 2 Duo processor and a 512 MB ATI Radeon 4570 GPU. Recently it had started over heating to extreme levels causing lag in online gaming and other problems. Here i am attaching the screen shot of the Real Temp application which is used for measuring temperature of CPU and also can be used along with prime95 to measure the temp at different loads.

Average distance to TJ max basically refers to the difference between the present temperature and maximum temperature that is 100 degree Celsius.

And after cleaning the heat sink the temperature’s have gone down by a considerable amount. Here is the screen shot after cleaning.

You can clearly see the effect of cleaning the heat sink and there by extending the life of laptop.