This is also from that same Phoenix Transmission web page: "Why do I need a “Lock-Up” torque converter?
The greatest source of heat in an automatic transmission is the torque converter. This is because there is a constant source of friction within a converter and as we know, friction creates heat. Even the most efficient low stall torque converter will never stop slipping so you will always have that source of heat generation in a non locking converter. When you add stall speed to a converter you are raising the RPM that the converter must attain before it transmits full engine power back to the transmission. While this is great for performance, it creates an even greater heat and efficiency problem. To make matters worse, in an overdrive transmission, even with steep gears, the engine rpm’s at cruise may be substantially less than the stall speed of the converter, a recipe for disaster. By applying a Converter Clutch you eliminate this slippage and heat source, allowing you to have the benefits of a performance oriented stall speed, plus economy, efficiency and lower operating temperature."
The 700-R4 locks up in 4th gear, where there is the greatest chance you will be cruising at or below the stall speed of your converter, causing the most slippage and most heat. The lockup converter eliminates the slippage.