How hot is too hot tho? Doesn't more hot just mean more energy?

It just boil water to create steam to spin the turbine, too hot will harm the equipment quicker.

could you locate the electricity generating parts away from the volcano itself and just conduct the heat from the hotzone itself far enough away to still draw the heat out of the system without posing an infrastructure risk to the system?

Yes, they already been doing it, either close (but not too close) to volcano, or in a place where the earth crust is thinner(which is still near volcano), but never on the volcano itself. It's one of the location specific renewable energy.

Also we don't just turn heat to electricity, we use heat to boil water to create steam to generate electricity, the source of heat is what different between power plant, like for example coal, incinerator, nuclear, and sunlight, all are just to boil water.