Phil what are you saying? That the air temperature sensor somehow heats the incoming air back up?

All the temp sensor is, is a thermometer. It reports the temperature of the incoming air to the engine, so the correct amount of fuel can be injected. This is because the density of air changes with temperature, so different amounts of fuel are injected for hot air vs. cold air.

But all the IAT (inlet air temp) sensor does is 'sense' the temperature - it doesn't heat it back up or anything.

If that's not what you were saying, forgive me, it's still early in the AM, things are sorta hazy.