Ditch the Thermostat?

I have not. When I got the car it had a spare instrument console. When I changed the gauges it read the exact same reading. The reading stays firm at the almost furthest right mark but when I've tested the gauge by grounding it out it goes further to the right. While driving it stays within one or two "hash marks" of the constant reading.

Wait, a thought, would Teflon tape restrict the grounding of a sensor and give false readings?

YES and I have a New sending unit that reads totally wrong. Another thing to consider since we are both in California is the gas you are using, when my friend and I used an octane booster, the cars actually ran hotter....food for thought