Your experts are doing just fine and I thought I'd toss in a couple of generic comments:
The powerhead doesn't suck, it's driven. Openings at the output of the water pump surely will reduce the water pressure up through the block....aka your seal reversed comment.
Stats work up to around 2500 rpms. Above that water pressure "normally" pushes the poppet off it's seat (against spring pressure) and opens a much larger flow port. If you problem isn't below 2500 rpms (for a number) it isn't the stats per se. Clogged cooling passages, after what you said about sand, surely would have to be explored.
Most stats have opening temp (tolerance expected) stamped on the bottom of the pellet. The OT sensor closes at 195F (with tolerance) on 3 and 4 cylinder Mercs.,,serv. manual. data.