I'm always ready to learn so please put me right on this. All I have read in the past pointed at outgassing so what is the true mechanism for the overheated pads to lose bite? By the way, I always understood the grooved discs where to remove dust and keep the friction interface clean but suspected that was also just sales BS! Never been tempted to fit nasty 'upgrade' parts when genuine or reputable OEM have always done me proud.
Organic/resin pads to outgas during the final curing. Final curing happens when the pads are bedded in after installation. The volume of gas that comes out is tiny. It can't be large, where will it come from? However, the "gas bearing" theory persists. It is myth.
Having said that, there are three types of brake fade.
1) Fluid fade. That happens when the fluid overheats and vaporises with the effects you understand and have been discussed above.
2) Pad fade. This happens when the pads overheat and change their frictional properties with heat. The best example of this is rubber brake pads on carbon rims. They quickly melt and this implies liquid, which is a lubricant. Other materials can fade without melting. The coefficient of friction of materials change with temperature and speed. Pad fade is when the intended temperature range of the pad is exceeded. Resin pads work at low temperature. Sintered pads work better at high temperatures.
3) Green fade. This is when a pad has not been bedded in properly had been overheated and deposited a too-thick layer of material onto the disc.
Green fade can be smelled and such a distressed pad gives off a stink reminiscent of a burning clutch. This smell is accompanied by a loss of braking force and excess pad material deposited on the disc.
On F1 cars the brakes and pads are made from carbon. The wear product is CO2. Yet even here the pads don't display gas fade. The holes drilled in the discs are purely for venting.
I will not be so sure that OEM is best. We've seen plenty of evidence here that OEM pads are often very unsatisfactory and after-market ones give better results will less noise and fade. I think this is one area where it is worth experimenting .
@glasgowcyclist recently had a particularly difficult case to solve. I wonder how his new after-market pads turned out for him?