I think that AMD mentions in their specs that they do have a thermal diode on the Palomino, don't they? I always just assumed that it would prevent the destruction of a processor, much like Intel's processors have had for a while now.
I was actually surprised to learn that the thermal diode will only recognize a 1 degree per second increase, and is useless if a plastic socket nub should break or if your heatsink should somehow come off. It's common knowledge that the T-Bird has no thermal diode, but the Palomino has a thermal diode that won't work during a catastrophic failure. The thermal diode on a Palomino is redundant, because any decent motherboard will alert you to a slow 1 degre per second rise in temperatures that gets too high.