Yes, that the entire point, the block the heatsink is attached to must
stay cool and even more important is the stainless, hollow, threaded
tube the filament is going into MUST remain below the metling point of
PLA as close as possible to the nozzle. If that tube heats up and
begins to make the PLA soft, then the filament princh wheel system can
reverse soft PLA back into that pinch and stop extruding since it's a
fixed distance between the delrin plunger and the knurled wheel.
Reversal happens a lot during printing to prevent the nozzle dripping
which again too, is worse if there is more length of heated soft
filament in the extruder system. Ideally, the only part we want hot is
the nozzle tip. Unfortunately, without specialized manufacturing (even
more so than we have now) and custom heated nozzles, along with even
more active cooling or specialized materials, it's dificult to create
that perfect temperature gradient, between the nozzle tip, while still
mechanically supporting the filament path, let alone holding the
nozzle against the downward pressure and then the side loads from
printing.
For the above reasons, you can see why upgrading to one of the many
printed filament drives that use a spring and ball bearing as a roller
are effective in fighting changing diamter or hardness of the filament
VS the fixed pinch system that comes stock. The stock system simply
has no tollerance for changes.
Further, based on the explanation above, many folks have looked into
modifying the cooling system to better cool the filament in the pinch
drive area by removing the heatsink altogether which lets even more
airflow downwards. This follows my suggest goals of colling all
filament path as much as humanly possible above the heater block--
hence again, the need for the insulation to prevent the heat from
rising.
So yes, far more complicated than may first appear. Looks are
deceiving.