The compact fluorescent bulbs do heat up, just not as much as incandescents. The savings for me are in the long life of the bulbs. I was replacing my kitchen bulbs as often as once a month (dark kitchen, plus frequent power fluctuations, I think). The CF bulbs have been in place for two years.

Most lights have shades of some sort. Fluorescent tube lighting has bothered me in the past, but the CF bulbs don't seem to have any effect.