That makes sense Joe, the anemic little cap they added didn't boost the average voltage much above the RMS voltage as the cap didn't get to charge up like the larger ones do. The higher voltage with the larger capacitors means there's more power to dissipate.
The benefit of the 12V strips are you use the power more efficiently, so you can supply them with a steady 10-11 volts DC at much less current and not be dropping as much power when running on full track voltage, but you still get the light you need.
I light my 18" cars on around 20 milliamps total current through the strips. The voltage drop from around 24 volts DC on the cap to the 10 volts on output of the regulator is 14 volts. The power of .28 watts is easily dissipated by the TO220 package of my constant current regulator. I've run my regulator module at 45ma (max intensity) for an extended period powering a 12V strip, and the regulator reached around 74C. Since it's in open air, it wasn't a problem. I stick the regulator down with double-sided sticky foam, and it insulates the board quite nicely from whatever it's stuck to.
I'm with you on the flicker, I can't stand it!
Dale, the output cap on linear regulators is to prevent oscillation, it's only necessary in certain circumstances.