160 actual coolant temp IS too cold, but unless you have a higher capacity aftermarket radiator, most using a 160 stat don't ever see it actually run that cool.
With a 160 stat, mine runs 176-178 or so cruising.
The Tstat does nothing to control the upper end of the normal operating temp spectrum though, that is the job of the fans.
If the car has been tuned, the turn-on setpoints are usually lowered, this is primarily why lower temp Tstats are used, to allow for lowering the fan setpoints.
For example, mine is set that the low speed fan comes on @ 195, and turns off @ 185. This would be impossible with the stock Tstat, where normal cruise temps are right around 192 or so. If that combination was tried, the fans would likely run all the time because they'd be trying to cool to a temp below the Tstat rating.
Stock, the low speed fans on a 2001 will turn on at 224. Also keep in mind the fans will also run anytime the a/c or defroster is on, up to 35mph.
210 normal cruising is a bit high, unusual even for the stock Tstat. It's possible you got a bad stat, or also possible you sucked up a plastic bag or something else blocking the radiator airflow- always check that first because it only takes a few seconds to look.
Seeing 225 when idling or in traffic is normal, assuming fan setpoints haven't been altered. Without knowing what your fan setpoints are, I can't say if this is unusual or not for your car.
Many feel a 180 stat is the best compromise, especially if the car is used in colder climates. It still allows the fans to be programmed on sooner, but won't run too cold like you found yours was doing.
And you are correct, 180-190 is about ideal for coolant temp.
