I have one of those too. Of course it gets hot, air compressors get hot. No news there. The motor, even when cool, draws enough to eventually trip a 15A breaker. Run it for a while and it will. They require a 12Ga 20A branch circuit to operate well, and would do even better on 10Ga wiring. The problem is that when connected to an inadequate branch circuit there's so much voltage drop that the motor current (and heat) shoots up and then the breaker trips. It's really that simple. Give it a decent supply and it will run cooler. BTW, I've often run mine hard enough to get the tank too hot to touch, using grinders and cutters. Hasn't missed a beat. Also, the motor is better than you give it credit for. I measured the power factor under partial to full load and it runs around .84 to .87 at 120V supply at the plug. Current ranged from 15.0A to 15.9A as tank pressure rose from 40psi to 115psi. That's not bad at all. Unfortunately, as the line voltage falls, current increases at a slightly greater rate. If you're running it on weak wiring, it wouldn't surprise me to see 20A and a very hot motor.
Do this: get a decent multimeter and measure the AC voltage at the receptacle the compressor's plugged into. If it's under 110V while the compressor's running, which I'm betting you'll find that it is, then you need to deal with the inadequate electrical supply.
I'm very interested in the best lube for this compressor too. When I bought it, the guy at HF handed me oil for it, which IIRC, was something from Castrol, but I wouldn't bet on the accuracy of my recall since it was a couple of years ago. I do notice that after running for a half-hour or so, it's pretty foamed up. It wouldn't surprise me that a better lube would help the heat situation a bit.
Overall, for the $80 I paid (on sale for $100 and 20% coupon), this compressor is a lot better than I expected.