Even with a highly lapped block you still need a thermal paste to fill the microscopic surface impefections. Take a look at
Thermal Interface Basics. Even the best thermal goop (Arctic Silver 3 of course) has some thermal resistance. Improvement in temps with a highly lapped surface is because less thermal paste is required so the thermal resistance between the block and CPU is lowered.
If you want to improve your lap job, clean the block with water and do the final polish with a fresh sheet of 2000 grit wet/dry paper and Arctic Silver as the lube. Any time you lap, there are going to be some copper and abrasive particles left in the microscopic suface imperfections. Using Arctic Silver as the final lube will add some Arctic Silver to the mix and your temps will drop.