Okay long story. It is still running hot.
The overheating was not because of the impeller, although it was good to replace it thanks all. The engine threw the belt that runs the water pump and the alternator. That is why it overheated. I did replace the impeller and housing though (aftermarket, bought it before I read your post Scott, whoops). So I put the belt back on tight and went to the lake. Ran great at idle at about 170 degrees F after warming it up. As soon as I throttled down to get out of the hole it threw the belt again. WTH? It has never done that before. Put the belt back on and same thing. Stays on at idle, but throws the belt when I hammer down. When I put the belt back on it would idle at about 170 F. I noticed the harmonic balancer pulley and the water pump pulley were not aligned. Weird that it has never really been aligned to my knowledge, and I have ran this engine for 200 or so hours and it has never thrown the belt.
So I take the boat home and install a spacer in between the harmonic balancer and the harmonic balancer pulley. New belt too. Now the water pump pulley and the harmonic balancer pulleys are aligned. So I take it back to the lake. The belt stays on fine this time, but the engine is running hot. Creeps up to 205 F. I have a digital temp sensor and an analog, and both agreed the boat was running hot. The pulleys seem to be vibrating/shaking maybe? The heat exchanger on the front on the engines hanging over the pulleys seems to vibrate, which I do not remember it doing before. The boat seemed to run fine though.
Any thoughts? The thermostat is new as of a month or two ago.