1: No they don't literally explode, they just sort of die slowly..unless you hold it WOT till it pops....
2: the metal in the sleeve is brass the piston is chromolly or some soft steel....the brass sleeve will expand and contract w/ heat...you want that to happen to some degree or your piston will be slammed into a tappered hole w/ every stroke, wearing out the edges of the piston head....if the temperature rises too much the metal will expand beyond what you want it too...when it cools it's memory will return most of it to original shape but 2 things happen...it will still be more expanded now that it should be due to excess heat...and 2 it is more brittle now....metal has been thinned and super heated and super cooled...it just happens
3: Piston and sleeve and conrod for 2.5 runs about 70-85 bucks....just save more and buy a better engine.....
4: when it breaks........you'll know.....anything from blown seal to mangled conrods......or like andy said through thte case....seen that too......
5: I run 2.5s around 250-260....they don't last long at that temp though but you get some evil power from a cheapo engine......276 if it's only been spiking at th at you're OK for a while but if it's been peaking like that alot...start saving......
when you say bogs...it is a fat gurgly sound or a too lean , not getting enough fuel kind?
if it's the fat sounding one then I'd say you have 2 issues possible.....your too lean on top and too rich on the bottom......real far off if your bogging down low and still running high temps......second is you might have an air leak.....does it idle solid or rev up and down?