UPDATE 5-22-13 The replacement battery BacPac from GoPro never got hotter 116F compared to 168F of the old battery. I was able to record at 1080-60 with wifi on and in the waterproof case until the 32gb TRANSCEND (not Sandisk, very important) card was full.
All seems good for the moment.
So- Firmware updates, Transcend cards and a new battery BacPac seemed to have remedied all of my issues with the GoPro Hero3 Black edition. It's taken six months to get to this point. YMMV