Wow, this thread sort of took off... A couple of things...
For those who are arguing against using the 700mb temperatures for cap strength, if you are saying this based on my previous post, rest assured, I'm not advocating solely using the 700mb temperatures. In fact, I explicitly state this is one level that can be used to estimate the cap and the cap is often found below the this level.
The truth of the matter is, you have to evaluate everything in context. You need to think about this in terms of parcel theory.
Stable Parcel: An unstable parcel can be thought of in terms of a marble in the bottom of a bowl. No matter what force you exert on the marble, it will always return back to the same position.
Neutral Parcel: A neutral parcel can be thought of in terms of a marble on a flat plane. When a force is exerted on the marble, the marble will move away from the original location.
Unstable Parcel: An unstable parcel can be thought of in terms of a marble on top of an upside-down bowl. The slightest force exerted on the marble will cause the marble to accelerate away from its original location.
CAPE stands for Convective Available Potential Energy. It's potential energy that is available for release should a parcel be able to access it. Just because a parcel is unstable (or there is no convective inhibition) does not mean that you'll have a thunderstorm develop. You still have to have some initial focus of lift to dislodge the parcel. A CAPE of 5000 J/kg is meaningless unless you have something to initiate lift to release the Potential Energy.
So, no matter what the CAP, CINH, etc you have to assess the vertical motion in conjunction to get a more complete picture.
Lastly, there is an argument about CAP vs. CINH. CINH is proportional to the summation of (Tenv - Tparcel) < 0. In other words, the CINH value is proportional to the accumulation of the cap strength at every level that has a positive cap strength. CINH is an integral quantity, whereas cap strength is a single-level quantity. If you simply rely on low-level heating as your source of lift, the two soundings above are identical. The same amount of sustained heating would be required for initiation. The difference comes in terms of forced ascent. If you have strong enough low-level convergence to forcibly lift a parcel through the cap on the left, you can get convection before convection with the sounding on the right. On the flip side, weak forced ascent throughout much of the atmosphere might be enough to overcome the CINH on the right, whereas it wouldn't be able to force the parcel through the strong CAP on the left. (So, depending on the character of the forced ascent, i can get either sounding to convect.)
Edit:
I oversimplified things last night in my haste to post. In the last paragraph, it isn't low-level heating that I should have referred to. I was trying to come up with something concrete to use instead of the mysterious quantity of "energy". In reality, the sounding on the right would require less daytime heating that the sounding on the left. However, the same amount of "energy" in the parcel would be required to overcome the inhibition. (I probably confused things even more...)