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Aluminium melts at 660 deg C, that's not hot enough to change the temper of the steel very much unless it's maintained for hours, rather than the few minutes it takes for the molten remains of the seat post to trickle out of the frame. Of course the paint on that part of the frame will be burnt away.
I've seen it done, but wasn't impressed with it as an answer to the problem. I think speed is the main thing to recommend it over more mechanical approaches.
wouldn't that much heat damage the frame?