I just did a ton of research on this (search my posts) and here is that I found:
The normal and most efficient operating temp for your engine is about 200 - 220 degrees. Therefore it's operating perfectly. Why do you think the thermostat is 195? It's because it opens at 195 degrees. GM and every other manufacturer did tons of research to figure this out and provide the best performance and longevity of your engine. They didn't just guess ...
Your truck is only overheating at about 265 degrees. 210? Completely normal. That's where mine runs.
A 160 thermostat will cause your engine to always run rich, because it will think it's not warmed up, so the choke basically will always be on, which will result in lower MPG, less power, and more emissions. In addition, the lack of heat will cause poor combustion, increased condensation in the exhaust which will rust it from the inside out, and finally the heat won't allow the oil to heat up which will cause it to turn to sludge. Finally, the lack of heat allows carbon build up in the cylinders.
Worst of all, your heater will suck in the winter time, especially with 0 degree weather!!!
All in all, the 160 thermostat won't be immediately apparent, but in a year or two you will wonder why all these other problems are cropping up.
Even with a 160 thermostat it won't fix your overheating problem. It will only cause other issues. If your truck is overheating, having the thermostat open sooner won't make your truck run cooler under load. It'll just run worse every other time.
What you need to do is flush your cooling system with a chemical CLEANER, check your water pump, check your cap, and pressure test the cooling system. If the cap or a leak is not keeping the water under pressure, then the block heats up and boils the water off the sides of the coolant passages. That puts air in the system, which makes it so that the coolant is not touching the block, and voila - over heating.
You have issues, but the thermostat is not one of them.