65C is safe under load, but i still wouldn't want to see mine reach that temp (probably because i'm used to seeing lower)... Even my brothers 125W AMD Phenom II 965 runs cooler than my 3570K at stock speeds

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To be honest, i'm not all that impressed with Ivy Bridge so far... The only benefits i see are PCI-E 3.0 and official DDR3 1600 support (which don't amount to much at the moment). I've not noticed any performance increase over an i5 2500, just higher (and uneven) temps
If that's under load then i'd say those temps are great for a 1st gen i7