Earlier...How long of a drive? Mine takes a full 20-25m to go from cold (az cold, not actual cold) to 180. Are you sure you hot the 698 and not 678? Maybe your bypass is stuck open? The stated temp is 180 on the hayden so if yours never hits that, Im not sure what you’ve got going on.
Have you guys considered that too cold is bad too? 160 sounds great, but I have to think Toyota put a thermostat and warmer in for a reason. Cold fluid is higher friction and viscosity. I would think there is a very specific reason Toyota went through all the trouble of bypassing their own cooler at a decent engineering complexity cost.
Toyota designs some good stuff. There are reasons that they incorporated a thermal bypass (warmed by engine coolant) before sending to a cooling path. I try not to outthink those who designed that system. My application (towing 4K camper ~10K miles total yearly) benefits from having an additional passive cooler. That said, I want the factory bypass to control that function. Having an additional non-functional stat adds no protection or capability that I am aware of.