Some people have used the 160 degree T-Stat, however you have to remember that the truck was originally designed to use the 195degree T-Stat and the computer has the parameters for the 195 degree T-Stat. What does this mean? Your trucks optimal running temperature is 195 degrees. If you put a 160 degree T-Stat then the computer tries to compensate for this, but never gets there because of the T-Stat. these tries and doesn't make it have to be doing something to your engine, but I don't know how much it really affects your performance. Maybe someone else knows the answer to that question. I always use the standard 195 degree T-Stat myself.
One more thing. If you put a 160 degree T-Stat in, your guage will read even less than with the 195 degree T-Stat.
Make sure that you have gotten all the air out of the cooling system, because air in the system will also give you a false low reading.