In my opinion (there are others) normal temperature is within the range of the thermostat, 190 maybe a few degrees more, when you are beyond this you have exceeded the capacity of the cooling system. It may Find a new ballance point as the radiator can remove more heat as the water temperature increases but in this mode evry increase in load is an increase in water temperature, the cooling system is not under control and you are on your way to an overheat
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Kinda,,, maybe?

Look at the design:
The thermostat is a bottom, intake, bypass design. When cool, it bypasses the radiator, only circulating coolant through the motor. A little warmer it mixes recirculated and from the radiator. With higher load/temp it draws all of the intake from the radiator, closing the bypass. It's job is to attempt to control the coolant intake temp in the 190F range.
The gauge sensor is in the top of the motor, coolant output. The number that it sees is thermostat/intake temp plus the heat gain from cooling the motor. It will always reflect motor load, so will vary with load, ambient temp, etc. Attempting to cool the motor to always run at thermostat temp, would waste a ton of energy and probably is not achievable in all load situations.
I was a service manager before most gauges were "deadened" and in the first hot summer weeks, we would have tons of calls. My rig is running hot, it has never run that high on the gauge,,, what did you do to cause it??? Took the boat to the lake last Sunday,,, well it was 115F and the boat weighs 5000lb,,, yes, but it has never run there on the gauge,,, maybe last summer,,, I don't remember it ever running there, need to do something about it,,, no problem, call the weather man a order cooler weather, unhitch the boat or I can spend a bunch of your $$$ with little chance of change...... Yep, I was one that was happy to see the "safe operating range" deadened!

