Yes, basically. I tried the 12v fan mod for about a month, and it during the day it was tolerable, but watching a DVD at 2 in the morning?
The ambient temp where I live is about 32-34C (90-94F) with 80-90% humidity, and my Xbox would run at 65C CPU and 50C MoBo (that's 149 and 122F!), which is right at the top end of acceptable, on the stock fan settings. Add a 7200rpm drive and it was a bit hot for my peace of mind!
With my stock fan at 50% (in UX, of course), my box runs at 54C/44C (129-111F) which is very acceptable for the ambient temps here and also not too loud for DVD playing. Strangely, I found 60% to be "just" that bit too loud.
100% will not burn your fan out, it is designed to cope with that - it may only last three/four years instead of five perhaps but that is usually not a problem.
Honestly speaking, I used to get overly concerned about cooling - which is why I still respond to posts about it, I did plenty of research. But living in a hot climate and having plenty of friends that have Xboxes, PS2s and PCs that run without additional cooling and run perfectly well I eventually decided it is an over-stated problem (most of the time....!).