I am quoting this from www.performanceunlimited.com website. Hope this clarifies things to some degree:

"However, there is a "middle ground" where both optimum performance as well as minimal wear share similar characteristics. That "magic" number lies in the 175-180 degree range, which requires a 180 degree thermostat. The all too commonly used 160 degree thermostat is way too low to be considered for performance or engine longevity. As the chart illustrates, engine wear increased by double at 160, than at 185 degrees. So then, why do the 160's exist in the first place? The 160's were commonly used in older, open loop cooling systems where only 6 pound radiator caps were used, and low 212 degree boiling points were experienced. In contrast, modern cooling systems can see upwards of 260 degrees in coolant temperature with radiator pressures exceeding 45 pounds. Many early hot rodders found the 160's to be better performing than the 190's, however, the in between "180" appears to satisfy both ends of the spectrum. The correct water temperature is required for the cylinders to achieve a minimum specific temperature in order to allow a fully homogenized Air/Fuel mixture to combust efficiently. Guess what the minimum number is… right! 180 degrees. Even so, you might see some still recommending the lower 160's, for no other reason than to possibly get that last drop of horsepower out, at the high price of dramatically reducing the life of the engine and it's internal components."