Since it's a low speed issue, it's either airflow or the cooling system IMO.
Google running lean vs heat generation and I think you'll be surprised. Apparently that is an incorrect assumption. I haven't watched all the videos or read the articles, but the consensus seems to be running lean isn't a heat concern.
I have a feeling if timing is a factor, it's because the cooling system already has issues. The amount of heat combustion generates is probably so great that timing is only going to be a minimal factor.
How's the radiator itself? Internally clearly good condition and one of the larger designs?
If you are only getting to 210* I don't know as there is concern to be had. I run a 195* thermostat and to keep the fan cycle rate down, I don't turn the fan on until 212*. I think GM originally spec'd 220* for the primary fan "on" temp, but commanded one or both (can't remember) on with AC regardless of engine temp, so they clearly weren't concerned with the SBC's regularly hitting 220*.
Only concern I might have with the 160* thermostat is that if I were trying to tune a carb and dial timing in while running a consistent 50* temp spread. It's probably more difficult to do so vs. a ~15* temp swing. What starts to ping and/or run lean at 210 probably won't at 160*, and clearly you have been to that level of tuning where it could be noticed.
Really never seen good rationale for running a 160* thermostat as a control for overheating problems. If the thermostat is open, that's all it can do. Once temp goes past it's rated temp (assuming it's fully open) it's no longer a factor in managing heat. Thermostat is only to establish the minimum running temp, after the full open value is exceeded, it's up to the fan/water pump/radiator to stop it from going higher.
Using a 160* thermostat, if the cooling system wants to run 210*, it sounds like that's where the components are designed to most effectively limit upward temp movement. That being apparently 210* is probably not a coincidence.