Undervolting can lower a gpus ability to perform and graphics stability. You basically increase the chances of artifacts, blackscreens, freezes etc due to vram errors. And no it really doesn't reduce temps as wattage = volts x amps. If you lower the volts, amps go up to hold the wattage needed. The processor temps will drop very slightly but VRM's temps raise significantly, causing issues.
The only reason to Undervolt is if you are using the card for mining purposes and are trying to fit as many cards as possible on smaller psu to save money on the electric bill since graphics performance and stability is not needed, just the processing power of the gpu.
Best way to lower temps is increase airflow, not just air.