cooler is better TO A POINT
this is really a two fold issue - nominal coolant temp, and variance under load
on the first, you want the coolant to stay as consistent as possible - on a gasoline engine, maximum power is generally provided at 190 - 195 degrees F of coolant temp
on the second however, you don't want to see more than a 20 degree variance in coolant temps regardless of load
in a perfect system, you would run 100 degrees over ambient temp or 195, whichever is lower, and 15 degrees above your thermostat point
cooling systems don't work like most people think they do - the coolant is supposed to be slowed down in the radiator long enough to cool down, and then gets let into the engine - the thermostat regulates when and how fast - it is supposed to open and close, varying with temp
too low of a thermostat, and you never get the coolant to slow down, and when you add a lot of load, you reach a saturation point - the same thing happens when you remove the thermostat
too high, and you have a limitation on how much cooler the "fresh" coolant is as it cycles through, therefore reducing the efficiency of the system, and causing you to run hotter under heavy loads and high ambient temps
too cold, and the mixture will run rich - at an extreme, this can fuel wash your cylinders - at a minimum, you will be wasting fuel, and burning dirty
much of this is affected by airflow over the radiator, and most importantly, negative pressure zones
pete and i differ somewhat on thermostat choices - i have not yet had the chance to play with the 160 to see what happens out here, but it goes against theory - there may be other factors at play though, so i'm withholding opinion until i get to see what the deal is for myself - there could be a fan speed/airflow issue that makes the 160 work - not sure yet
in my car, i am running the 180, but i have drilled a 1/8" hole in it, and am running the 85/93 - the result has been good, but still a touch more variance than i would like to see under extreme load, and it tends to run too cool most of the time (about 175 or so) - to bring it up to 190, i would need to INCREASE the thermostat point, but then i think i would run out of room in the efficiency of the system
if you are going to use the 160, i would try the 92/102 first - i think pete will say the same thing