I agree with Hog. Making your house the most efficient as possible will ensure that the heat is able to increase and be retained in the house. I am running a PE Pacific in a bungalow that was built in 1960 (3000 square feet, including the basement). When I first installed the stove, I thought it would keep the house nice and toasty all winter. I was wrong.
After that first winter, I increased the attic insulation to >R50, sealed other penetrations to the attic space, sealed and insulated other parts of the house (ie. rim joists etc.), replaced window weatherstripping, and put plastic film on the windows during winter. With the work that was done, the house temperature is comfortable during the winter months.
Although, my insert is not in the most ideal location (in the basement), it is able to keep the house warm. I do have the gas furnace programmed first thing in the morning and evenings, if the temperature below 19 degrees C inside. It has been pretty cold here, so the furnace does usually come on during those times.
Despite all the work, the house is not as efficient as it could be. Limitations include the wall frame construction is 2'x4' (there is only so much of an R rating that can be achieved), not all insulated areas have proper vapour barriers, and the windows are probably from the 1980's (they are double pane but not Low E argon). These issues are too expensive to solve at this time. That said, I can do a bit more sealing and insulating. A good idea is to get an energy audit done, which will provide you a great starting point.
I started running the blower on my insert again this year and I find that it is aiding in the distribution of heat in the house and keeping the stove at a more controllable temperature. However, with a loaded firebox, the insert door area can still peak at around or slightly above the 800 F level. Wood is usually added at around the 250-300 F mark with the air control at 50-75% open. It is usually slowly shut down all the way in 15 minutes. No red was observed on the outside of the stove, but the baffle and side-rails sometimes will redden a bit.
This is the first year I have run with Hog's configuration of thermometers, and it is providing useful information in regard to operating temperatures. I did talk with PE and they stated that these peak temperatures are acceptable for their inserts. I have done the dollar bill test and the door was sealed. I do wish I did have a bit more control of the fire, since it can peak at 800F with the air control fully closed. But this is probably the nature of the beast with this EPA rated stoves.
The baffle will sag over time. Unless extreme, it shouldn't affect performance. I don't think that a onetime slight redness of the stove exterior would hurt the insert too much. When the burn season is over, give your insert a thorough inspection for any cracked welds etc.
In your case, it seems that the temperature at the stove door increased to 700F in a very short amount of time after adding a fresh load(15-20 minutes). What was the temperature of the insert when you added the wood? Have you done the dollar-bill test? Also, do you have insulation and a block-off plate installed in your fireplace above your insert?