Thermostat ?
Don't remove it. The LT1 thermostat works diffrently than a regular sbc thermo. It allowes coolant to recirculate through the engine during warm up. It's not really a good idea to run without a thermostat on any street car. A properly operating thermostat will not cause an engine to run hot. Its main function is to allow the engine to reach it's operating temp as soon as possible, thus cutting down on wear.
I think that 160 is too low and that 180 is just fine. If the coolant does not let the oil get up to temperature then it does not get hot enough to evaporate all of the water that forms in the oil from condensation in the crank case.
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