So if I understand you correctly you are saying that what I was thinking is correct.....using your example, the heat generated is exactly the same whether the motor speed is controlled by a flow control valve, or by a simple needle valve in a bypass circuit?     Assuming steady state load and pump flow, they function exactly the same?  Basically the difference is that that flow control valve effectively has an automatic control mechanism to replace the operator dialing the needle valve to match the flow to the pressure? 

To get to the practical application of the question, if I add an additional function in parallel to use some of the flow which is currently being bypassed through the needle valve, it will reduce the "waste" heat load generated by the valve, is that correct?