Gentlemen:
Traditional teaching indicates that cryogenic processing only results in the conversion of retained austenite to martensite. That goes entirely out the window with the fact that studies show it has an effect on non ferrous metals such as copper, silver, aluminum, etc.
That cryogenic processing reduces residual stresses has been demonstrated for years. There is a study by NASA on welded aluminum that states there was a reduction of residual stresses, among others.
In use on brakes, our customers typically and consitently get two to three times the life on their cryogenically treated rotors. This is way beyond any experimental margin of error, and occurs in the harshest of all experimental arenas, that being real life. These people have the data to support this. They keep track of their fleets and what type of brake life they get. Some even have chips in their cars to track the driving habits of the drivers. One large Chicago suburb went from 8000 miles/rotor change to over 30,000. When they get a new car, they just figure after about 8000 miles they will need to change rotors, and then it will be ok until about 40,000. Now we do their fire engines also.
You ask what reactions are taking place at low temperatures. Typically, the solubility of elements in the matrix falls as the temperature falls. Also, the number of vacancies in the crystal lattice structure falls as the temperature falls. This can cause a redistribution of associations in the lattice structure. This is evidenced by the research of Dr. David Collins where he states that the eta carbides formed in steels are initiated by the cryogenic process, but they form on the rise in temperature.
If these theories are correct, the slow drop in temperature typical of a cryogenic process is there for several reasons. The first is that quick drops in temperature can crack metals. It is also well known that if you drop the temperature quickly, you can "freeze in" vacancies. Evidence that vacancies are removed or moved in cryogenic processing comes from the fact that sound acuity in stereos is increased by the use of cryogenic processing of circuit chips used in them. Vacancies in chips can and do cause changes and reflection of the frequencies flowing through the chip which changes the sound. In a study by Honewell, we found that cryogenic processing "healed" vacancies in the thing film magnetic memory chips that were processed.
Other things that happen in materials at low temperature are superfluidity, and superconducting. Both of these happen at temperatures considerably lower than cryo processing temperatures. Superfluidity happens in a narrow temperature band at about 2 degrees Kelven.
By the way, one reason for the graphite in brake rotors is that it helps conduct heat away from the surface, as the heat transfer coeficient is higer for graphite than it is for iron.