Ok, so I think it's pretty clear who here knows what their talking about, and who (like me) isn't quite up to speed, so thanks to the helpful folks.
Be nice to come to a consensus though. Is a sensible figure to tune the current draw to something like 80 - 90% of the maximum rated discharge for a single cell? And is it ok to work on a doubling of that maximum rated discharge for a parallel setup, or is it the case that although that makes sense on paper it isn't sensible in the real world and you should take a belt and braces approach and stick to the single cell rating?
It isn't the end of the world either way, the setup I'm running these days on a single sell is more than adequate, and a reason to start researching a mod with a LIPO cell is pretty appealing. I'd rather have a safe setup and a new project than no new project and no face or fingers.
I think your heading along the right lines. Barring a connection failure on one of the batteries and presuming your cells are well matched you do have twice the amp draw available. How much your willing to pull from the cells is up to you at the end of the day. Hugget's post previously about Torchy's tests would hold ground for me as he is renowned and trusted. I do have the ability and equipment to check these things out myself along with accurately measuring the internal resistance of the cells to ensure matched cells but don't tend to have the time for things like that these days. Plugging Torchy's figures into steam engine gives you 30% head room on a 0.1ohm build but your talking crazy power there. 176.4W at 42A not accounting for volt drop or 136.9W at 37A at 3.7V nominal voltage. I'd be quite confident in building a set up for that, whether I'd want to is a different matter.
Another thing to bare in mind is even if you did do a build safe for a single cell and then put that onto a parallel setup even though the voltages start off the same the parallel setup would hold it's voltage better under load. This would mean that you'd still get more power and be super safe.
I think there are better ways to get that sort of Wattage if that's what you or anyone else wants. Sticking to 4.2V max your having to build lower and lower resistance to get there, getting closer and closer to a short. It also means that any slight variation makes a huge difference.
In my opinion upping the voltage and upping the resistance is the way to go. There are a few ways to do that to achieve similar power levels but all of them involve taking different precautions and various different build techniques. High power regulated mods are all the rage but they aren't without problems with supplying power to them. Most are powered with two cells in parallel but without a way to monitor each cell individually you would again have to be absolutely sure of your connections. I've heard of a few that ended up running on one cell without the user being aware till they went to charge them.
There are a few regulated mods that will run off series cells I think but not many, this would be the way to go if the electronics are up to scratch. This way both cells could be monitored in use and if a connection fails the power would be lost altogether.
Non regulated series is another way to go but you have to drastically alter the way you build and not many atty's are up to the job.
Chegs is the man for this I believe.
Any series setup involves a more complicated charging setup to balance charge the cells. This is an absolute must.
What mod is it your getting by the way? Can the switch handle getting on for 50A?