That makes good sense. Although not as easy to get to, I suspect that one could do the same back closer to the tranny so that you are getting the hottest reading.I put a T in the cooler line [output flow] just before the external cooler for the gauge. Not ideal coz the fluid would probably drop a couple of degrees in the pipe. Seems to work ok, and I left the original sender where it is.
What hardware did you use for your sender, T, fittings, etc.?