If the 160 degree thermostat opens at the correct temp and your radiator is efficient enough to maintain the temp at 160 degrees then it would force the computer to stay in warm-up (open loop) mode all the time. Running in open loop mode would cause your car to run rich all the time and lead to quickly fouled plugs and catalytic converters if you still have them.
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351W 89 Mustang GT Convertible