If the car isn't moving, or on surface streets the coolant temps will still rise to normal levels (190's) simply because the cooling fan is controlled by the chip, and unless there's high speed air moving through the radiator it's still going to rise to the stock chip levels because the fan won't come on until the temps get into the 190's.
On the highway the coolant temps will be down closer to the 160 thermostat level because of the high speed air coming through the radiator.
Won't hurt anything, just not of much use to run the 160 thermostat without a chip to take advantage of it.