You aren't removing any of the capsacinoid oils that make it hot, only the water when you are dehydrating. Since you are losing water, you end up with less product than you started with, but the same amount of total heat. Essentially this makes your finished product hotter per unit volume than fresh picked pods, but you aren't gaining or losing any heat in the process. I find the finer you grind it up the hotter it seems as well since there is more surface area to get you with.