If the efficiency of the radiator is good, then the motor will not eventually reach 200 degrees, even if it has a 160 thermostat. If the radiator is doing its job, then the engine will typically run in the 160-175 range most of the time, even in heat and traffic. If the radiator is not working right, it will reach 200+ degrees in traffic, like mine. With a properly working system, the 180 thermostat will run in the 180-195 range.
Basically, lets assume the radiator/pump/fan are always doing their job. A 160 thermostat will always run cooler than a 180.
That said, the lower temps are ok (not great, but ok) with the stock pistons, which dont require thermal expansion to meet tolerances and keep blowby and leakdown to a minimum.
If the engine has been rebuilt with non hypereutectic pistons, the pistons DO require thermal expansion to keep blowby and leakdown to a minimum. Its also required to limit piston slap and keep the ringlands clean. It is required for proper ring seal. If its not sealing properly, the chambers get nasty and the oil gets contaminated very fast. The rings wear much faster. The valves get nasty. Nothing kills flow like a bunch of carbon on the back of the valves, which got there when the contaminated, syrupy oil bled down the guide, and built up cause it wasnt hot enough to burn off. Sure, alky injection keeps them clean, but not everyone wants alky. Carbon buildup is bad, no matter where in the engine it happens. A motor running too cool cant burn carbon out. Carbon is abrasive. Thats not something you want tearing up your rings/walls and valve guides.
Sure, a cooler combustion chamber reduces detonation, but doesnt anyone realize how low temperatures affect everything else? The mains and rods dont have proper clearance. everything is too tight, and I dont need to explain why thats bad. You end up with loose pistons slapping around in the cylinders, and mains and rods that are too tight. I havent heard of an OEM ever building a car (built for daily driving and abuse) with a 160 thermostat. These engineers have spent their lives work, designing things that are backed by science. They dont design ANYTHING based on "seat of the pants", or what some dude on an internet site said. Everything is backed by Physics. Science. Data.
I'm only continuing with running my 160 thermostat for the time being, because my radiator sucks and it keeps the engine running in a safer zone. Once I get a better radiator, the 180 will go back in. I'd gladly lose a couple pounds of boost, then have my wallet drained by what should have been an unnecessary rebuild.