[kalleboo]

The issue wasn't lowered overall capacity but lowered peak performance. During basic usage when the CPU is mostly idle (reading email and whatnot) the peak current draw was fine and the battery could handle it. But if the CPU suddenly peaks to full usage (load a heavy web page), the battery can't deliver the instant amount of current and the phone browns-out and shuts off.

Temperature also effects the performance of the battery so if you're out in the snow it could handle less than being indoors in the heat.

That's why the CPU throttling worked. It kept the CPU from pulling too much power in one instant, and then the battery lasted fine all they way down to 1%