thermostatic plate should be at 180*F. If you were at 160-170 then you are overcooling the oil. I manufactured a blockoff plate that is drilled so that it still allows for air flow through the cooler and my average temps here in cali for the winter allow for a 190ish oil temp and at night it never gets below 180. I've done some seirous canyon carving and it got up to 220 and like you stated as soon as you let off of the throttle it drops temps pretty quickly.
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