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8/3 - All Core 2 desktop processors are overclockable. However, only the Core 2 Extreme ships with an unlocked multiplier. In Intel's words, the bus ratio locks "have been removed".
The locks, when present, exist for overspeed protection, but in the hands of someone who knows what they're doing, an unlocked multi allows for greater flexibility in overclocking.
Other differences between Core 2 Duo desktop from Core 2 Extreme are minimal.
Some of the Core 2 Duos have only 2MB of shared L2 cache. Core 2 Extreme, as well as other Core 2 Duos, have 4MB.
Core 2 Extreme is clocked a bit faster than the fastest Core 2 Duo. Big woop.
Chipset recommendations differ slightly, too.
Intel recommends one of the 965 Express Chipsets for the Core 2 Duo desktop, and either a 965 or the 975X Express Chipset for Core 2 Extreme.
A 965 Express Chipset works with a Core 2 processor to regulate fan speed depending on the temperature of the CPU. This allows for quieter running systems.
The 975X Express Chipset does not have this fan-regulating technology. The 975X instead offers support for dual graphics.
At the moment, you can have either a quieter system or dual graphics, but you can't have both.