Just a few more things to add if I may.
Isn't that why everything I've read about using buffers says to use them on slow settings with compound so as to not get it too hot?
Its probably more that you dont dry out the compound too fast. Its not like the typical DIYer is going to grab a 8lb rotary @ a 90 deg angle and start burning. Typically you would read something like "start slow and speed up/flatten pad after a few passes". Check this out. Lets say I want to buff out a black hull thats been sitting out in the FL sunshine for a while. Thats right..you could almost bake some stroodles on it. If you try to compound it before you cool it down..your compound would flash before you could even pull the trigger.
Im going to suggest that you do melt..well ok not "melt"..but do heat up the surface. To elaborate on my first post. I said "Microscopically" heating and melting. Were talking 600 to 1k fine scratches. Now I can pretty much say for sure that with the amount of pressure and speed that Im using..that on that scale, the fine gel scratches are not only getting sanded by the compound..but also heated enough ( by friction ) that the little itty bitty mountains and valleys do 'melt' and even out. Again..I said not blowtorch hot..but hot enough. I can assure you that these dark gels on some of these boats get Way hotter ( enough you cant put your hand or bare feet on them ) than what Im getting them to. With paint we do Melt the resins to blend them together ( but im sure there much difference in the cross-linking of the molecules ).
Now back to you Highlife..
There really is no sure fire answer to buffing or sanding and buffing. Every boat is different. Some may have residual burnt out wax that makes it appear oxidized. While others have a thick coating of Mop-n-Glow on them. And then you have the occasional boat thats so infected with 'perosity' that you would never be able to buff to a shine. There is no 'perfect' compound. A good wool bonnet is probably the only thing that can be agreed universally for compounding. There are times when just Finesse will be enough. Or sometimes you may wish to make a hybrid of two different components..making it 'perfect' for your boats surface. Or yes..you may have to put some paper to it. In the long fun We can only guide you towards proper methods,tools and common do's and dont's. What works for me may not work for you.
The only thing I would stand firm on is Not to use Wax. Its too thick for the pores of gelcoat. Use a good 'sealer' if anything. I think the Iboats store sells 'Awlcare'. I can personally attest to this working very well with gel coat. It does not yellow and is easy as pie to work with. But Im sure there are other good sealers out there.
We would love to see some recent pics if you can swing it.