Really no reason a lower temperature thermostat will correct an overheating problem. If you have a 195 thermstat and the cooling system can't maintain that temperature and it gets hot, there is no way it can maintain an even cooler engine temperature of something like a 180 or 160 degree thermostat. As stated above the thermostat only maintains the minimum temperature but should have little to no affect on the maximum temperature.
Also keep in mind that the engine temperature shown on a gauge may not be the exact same as the thermostat. First issue is that thermstats are not a precision instrument by any means and I would expect to see at least a 5 degree opening temp difference between the same brand and rating. That's just what you should expect out of a $10-$20 piece. We pay hundreds if not thousands of $ to get more accurate temperature sensors here at work. Second is the temp gauge is likely reading at a different location than the thermostat.
Also keep in mind that the engine temperature shown on a gauge may not be the exact same as the thermostat. First issue is that thermstats are not a precision instrument by any means and I would expect to see at least a 5 degree opening temp difference between the same brand and rating. That's just what you should expect out of a $10-$20 piece. We pay hundreds if not thousands of $ to get more accurate temperature sensors here at work. Second is the temp gauge is likely reading at a different location than the thermostat.