As for the rest of the story on thermostats and engine temperature....
An auto engine (gas or diesel) is just a self-contained heat pump. Lost heat is wasted energy. But several other things come into this. Above about 180ºF engine wear is reduced compared to below that temperature. (Below about 160ºF engine wear really increases). When you start getting much above 225ºF other problems start appearing. About 195ºF is just about the ideal temperature for today’s engine, based on compression and the current gasoline formulation (octane). Hummmmmm... the general at GM seems to have figured this out too!
So why use a lower/higher thermostat? Higher if you were running propane or alcohol maybe, of if your were at the North Pole? Higher leads to quicker warm-ups and quick warm-ups reduces engine wear. Lower, if you have problems with engine detonation. Higher compression, higher temperatures, higher horsepower can led to higher temperatures, which is why some tuners want a cooler thermostat.
But lower temperatures making more horsepower? Well it ain’t necessarily so in all cases. Cooler air intake can definitely help produce more power, but cooler oil and engine temperatures can cause more friction/drag reducing power. Lighter oil can reduce drag. Synthetic oil can reduce drag and friction. But lower temperatures allow more contaminates to form in the engine reducing the life of the detergents in your oil. and it goes on and on and on and on. Everything is a compromise; there is nothing free. Reducing temperature to gain horsepower through a hotter tune can cost you more wear and tear. Increase temperature can cause loss of performance. You have to decide what you want and what it is worth to you. Nothing is black or white, it all depends...
A water temp of about 165ºF in the heads, with an engine block water temperature of 205ºF, and an oil temperature of about 230ºF, would be an ideal hp producer, and give good engine wear. Something like this is tried on the "reverse flow engines" but they are not perfect, GM is still working on it.