Out of curiosity, why would the engine overheat with the thermostat completely removed?
It will if you end up sitting in traffic. The water flow through the engine and radiator doesn't have a chance to cool since it is being constantly flushed through. While driving, this isn't as big of an issue as all the airflow pushed through the radiator helps. Sitting in traffic, you only have what the fan can pull through the radiator while the water is constantly flushing. Not enough.
I have never used anything above a 180 degree thermostat in a small block and have had no issues. Once I tried a 160 and the heater would not function due to the water temps. We do not have climactic extremes of heat or cold during the seasons here in the PNW, but I imagine you get fairly warm in summer.
Running without a thermostat decreases gas mileage a bit and can create issues tryng to warm up an engine.
Jeff