I built my house 9 years ago, we switched as many bulbs to compact flourescent as quickly as they became available. My living room used to have 12 75-watt flood lights lighting as wall washing lights on 2 of the walls, I switched to 16 watt reflector compact flourescents, they are on whenever we are in the room and they were installed 8 years ago, none has ever failed, and my electric bill dropped too!
As for heat, I have had 1 bad experience with compact flourescents, and it is a 42-watt spiral bulb that is installed in a recessed ceiling "can" fixture. The bulbs get very warm, and the ballasts get warmer. One of the 4 I have installed sparked, started smoking and the ballast burt. It did not start a fire, but then my wife was in the room when it happened and flipped the switch off. She removed the bulb. I replaced it with an identical bulb and have not had problems since.
I do not like them for outside use. When the temps drop into the 30's and below they flicker for a while before lighting up, and often they are dim for a while. I'd say I have 50 to 75 of them in and around my house, most have been in use 5+ years.
I wish someone would make brighter reflector style compact flourescent bulbs for use in recessed fixtures!!!