This is one of those myths that is apparently harder to bust than the "you need backpressure in your exhaust" myth.
I am going to paste some text from this link here:
https://www.stewartcomponents.com/index.php?route=information/information&information_id=11
I would like to add, you
may want a thermostat for a few reasons:
- you want better heat in the winter
- your stock EFI is looking for a certain operating temp or it won't run as intended
- you want it to warm up quicker
- you need to meet the emissions check
- you want it it to run hotter
- you have one of those older low pressure vehicles with the cap on the pressure side of the pump mentioned above
- something I missed
However, your K5 is not going to overheat because you took out the thermostat as you noticed. Fluid is always in contact with the metal while it is moving because it is under pressure.
Most racers don't use restrictors any more. I don't run a restrictor or a thermostat in my street/strip car because I only use it in the summer, I don't need it. What happens is, it just takes a little longer to reach operating temp, which is whatever happens to be the equililbium where the coolant system can't remove the heat faster than the engine is making the heat. When you think about it, the closer the coolant gets to ambient temp, the less effect the radiator has on it, so there will be some warm/hot temperature it will reach without a thermostat. If I wanted to raise the operating temp I would use a thermostat, but most engines make more power with hot oil and cool coolant. If I remove the thermostat from my truck it still runs about 180 degrees, I run a 160 thermostat and I still get heat just fine for the few times I use it.
Yes you need some sort of restriction in a boat because you have a constant supply of cold water the size of a lake (literally, or maybe a river or an ocean). So if you don't control the temp it may never get up to temp as it isn't recycling the previously heated coolant through like a vehicle radiator. Although some boats do have separate coolant and heat exchangers to keep the dirty water out of the engine block and heads.
Also, some boats like jet drive boats need a pressure regulator on the coolant inlet as the pressure from the jet can reach over 100 psi and blow coolant hoses and cause gasket failures at higher power levels, at lower power levels a ball valve can simply be closed until the engine operates at the desired temp.
With that said, with your rig I would run a thermostat like the guys said, there really isn't a reason not to for you, especially if you want warmer heat in the winter. Fix your coolant system if there is a problem with that, or get a properly operating thermostat if the one you have is stuck shut.