It was originally used for mobile CPUs, but was brought over to the desktop side when heat became a problem.
Intel's version of PowerNow is called SpeedStep, but I don't think they use it on desktop CPUs.
The P4 did have thermal throttling though, so when it got too hot it slowed way down and eventually shut off, because they had very serious heat issues.
Anyway, getting back to the point, yes it's a very good idea and is great for reducing power consumption and heat.
I have my laptop, with an AMD Turion CPU, set to max battery, so on AC power it fluctuates between 800MHz and 2GHz, and on battery it stays at 800MHz.
Way to save power, the battery life's pretty good.
And the heat is quite low too, if it gets too hot when I'm using it normally I just pull the lug and let it run on battery - it cools down fast and gives the battery some exercise too.
Also, it's not as slow as it sounds, 800MHz for a Turion is, while not exactly record-breaking, still a pretty decent speed.
That's enough rambling from me anyway.
Here's a bit from AMD about PowerNow technology.Glad I was able to help you out, and it's nice to see I helped someone else too.