IMO that BIOS setting could have have been clearer to say something like "allows VID increase with unlocked turbo multi's". With a setting of 0 (Auto?) that means for instance the 2500k VID plateaus after 37x multi. By changing that value to 0.200 then VID will increase to something like 1.5V at the 50x multi. IIRC Intel spec is for 1.52V max VID but it seems to stop at 1.5000V.
I had a closer look at VID. It seems with C3 and/or C6 enabled VID goes a fair bit lower with only one thread loaded. Asus calls disabling C3/C6 an enhancement to overclocking but it seems to me to be a work around for a buggy Sandy Bridge. Would be interesting to hear what an Intel engineer would have to say about it. So with offset which is dependent on VID that would mean using extra voltage or losing the highly efficient power saving of C3/C6. C1E can still be used without C3/C6 to give an idle power of ~12W vs ~5W with C3/C6 or if using fixed voltage then VID doesn't come into the equation and C3/C6 can be used without that problem.
Here's showing the difference with C1E/C3/C6, all other settings the same, EIST disabled and running 45x multi. With C3/C6 enabled the VID seems to be a bit jumpy, whether that's due to the software sampling it idk but you can see the difference in Vcore is quite large. I should also point out that while one thread is tied up like this then C1E isn't going to give any enhanced power saving, i.e. it's just going to act like C1.