increasing L2 size does not decrease power consumption. it makes the cpu more efficent per clock with certian tasks, since it is able to hold more information. it doesnt have to keep going back to ram to get information. the core 2 arch is different then the Pentuim D you talk about. as it is a short pipe line that data going through vs the P-D which is a really long pipe. to put it this way P-D by the time it ended was at 38 stages if i recall right. the core 2 line started at 20 or 22 stages that is a rather big decrease, when you also consider they had the same clock speed or near it. now im not sure if anyone knows how many stages core 2 has when the series ended.
the new i series is just a modified core 2 arch, but that is prolly the more simple term. the reason the newer cpus have 512k per core is that they have a large L3 to store the data in. that way it can move large amounts between the cores, while core 2 did have the large(ish) L2 it was shared between cores. it was however not shared when they released quad cores, so to get data from one set of cores to the other. meant taking longer by having to send it back through the northbridge then back up. also 512k is a good inbetween for L2, that is if you look at gaming. more specificlly low res gaming where the fps depends on how much cpu power you have. as with core 2 every doubling of L2 increased performance in gaming by 6.7%, i thinks that the right % when i ran the numbers back then.
leaving from work, be back later to add more...