No.. Its the resistance to electron flow that produces heat ..

Analogy of water through a pipe.. smaller pipe high friction = smaller cable high resistance
bigger cable means higher current flow

Induced current means electron flow picked up from another conductor magnetic field (flux)..

By itself it doesn't produce a temperature rise, nothing you can feel anyway ..

The heat comes from bad contacts, pitting due to electrical arcs..

which is why you must periodically tighten down your connections.. or use a lock washer..

Yes, adding the capacitor could be one option. But I am thinking if I just want to turn on all 4 lights at once, I can just connect all 4 to a single gang model ?

What I am trying to figure out is will the switch now see the total wattage as 7.5W x 4? i.e. Like just using a 30W LED bulb.

The max wattage of the TC2 single gang is about 300W and max 5A, so theoretically more than enough to handle the 4 lights.

Am i looking at this correctly?

yup, technically it's correct.
it should be more than 10W and it should work properly.

try it out and let us know!

Ok thanks. Now i need to figure out how to connect all four light wires safely into the 1 gang switch....

Twitch the 4 wire together and stuck it inside the hole.

Did it work?

it's 2018, hopefully it worked