Just to add...If you have say, a quick sensing element for your gage, that could show you a higher delta T, or temperature difference between the radiator coolant and engine coolant when the T-stat starts to open as well. On a cold start up, even if the t-stat sees 185, the temperature will keep on rising slightly at the sensor as the hotter coolant moves through the engine passages (still picking up heat from the engine) to go on by the sensor. The colder coolant still has to enter the system and reach the gage sensor, which takes a few seconds. It's like when you go to Wal-Mart and know the bathrooms are in the back of the store instead of the front. You have to go by a lot of stuff until you start to get relief.
So the temperatures continue to rise until enough colder coolant mix reaches the sensor. This could cause your initial surge in temperature above 200 but as the t-stat opens further, a higher delta T exists, so you will see the most change in coolant temps after the T-stat opens. Once the t-stat is open, then the coolant temps stabilize as the system is now in full operating mode with the radiator in play. And if it's cold enough outside and your system is super-efficient, you may see the temperatures fluctuate some until the temperatures stabilize. Regardless, the engine will find its operating temperature on its own. If it's 205, ok, fine. If it's 250 or 260 or higher...start to worry. As
airboatgreg pointed out, the T-stat has absolutely nothing to do with your coolant system's operating temperature. Design, materials, layout, and all of the entire cooling system is what determines your engine's operating temperature.
If you leave the thermostat out, it's not going to do anything bad, unless your system NEEDS a restriction at that point. Other than take forever to warm up. If the car companies could get away with it, they'd never put them in. But for most cars, it is a crucial point of helping in lowering emissions by getting the engine up to operating temperatures quickly and it also helps in getting the heater core warm on those 15 degree F days. Plus, kept the customers from whining about poor cold performance on initial startup. So 160 or 180, 185, 192, 195...pick your T-stat. On the street, that won't matter much. A 185 or 192 difference in T-stat setpoints likely won't even be noticed in your daily driver.