With regards to waste heat:
The overall process is estimated to be around 42% efficient. That means that a 10 megawatt power plant will produce 17 megawatts of waste heat. It would be a shame not to make the most of this resource.
The very high efficiency (80% to 90%) are related to converting the x-rays and alpha particle beam to electricity. The conversion efficiency of the input pulse to that plasma ball where the fusion takes place is a bit of a question mark at this point.
Up to now this step in the process has not been very efficient and is where a lot of electricity gets turned into heat. This is why cooling that central electrode is such a big deal.
Hopefully the trick that Aaron Blake proposed of introducing an external magnetic field will make this step very efficient too. We just don’t know. This is precisely why these extensive simulations are being done; in order to optimize this step.