165? That seems a bit low, even for Canada.
I have a 180 in mine (in Texas). (I verified it started to open at 180 in a pan of heated water with an oven temperature probe and it fully opened by 190.) My electric fan is preset to come on at 185 and off at 165. The probe is installed into the highest fin possible on the left side of the radiator (my thinking it would be the hottest spot). The temperature of my radiator is not setting the running temperature of the engine -but I believe yours is. Once your thermostat opens, the temperature is regulated by your fan. I don't think that's a good idea.
When I first got on the road, my gauge was reading about 10 degrees high. After I was sure the thermostat opened at the proper place, and after adding a voltage regulator, I calibrated my gauge -but I have the early TR4 electric meter, not the stock capillary tube. Still, for the first few hundred miles, I tried to drive on cooler days, and the gauge often showed much hotter than I wanted to see -never pegged, but it got up there.
Having said all that, it's a slow, cool, rainy day here in Houston. I just came back from the garage after running a similar test as you. I turned on the floor fan out of habit. Since it's only 81F, I pulled the choke and started a timer at 4:04pm as I watched the temperature meter(s) and let her idle at 900RPMs. I have a probe on a meter touching the front carb bowl (started at 28C (or 82F)). After 3 minutes, I pushed the choke in to high idle with the dash temp gauge showing under 110F. At 4:08, I pushed the choke all the way in as the dash gauge moved towards 110F (the first mark) -the carb reading 34C (93F). I have a small hole in the thermostat which may make seeing the actual dip of the thermostat opening harder to see. Anyway, I was fiddling with my phone camera when the electric fan came on the first time at 4:22 and turned off before I could switch modes on my phone to the stop watch. The fan turned on again at 4:24 with my stop watch showing 19:10 (min:sec since start up) and off again at 19:20 with the dash showing temp of 185F and the carb bowl at 47C (117F). So, it took almost 20 minutes to turn on the fans (185), but only 10 seconds to turn them off (165) but my dash gauge never went past the "mid range" of 185.
I'm not sure if any of this helps, but it is information. I have 20,000 miles on my engine, so I think it's broke in, and I'm pretty sure it's timed well too. But I also still have the original style radiator with a crank hole in the center. In the 30 minutes it took me to write this report, the car cooled down to 100F (dash gauge and fuel bowl) with just the box fan blowing in the garage, and restarting was a snap.