So I found a diagram online of my setup and how the t stat housing works and to me is a little dump on placement of the sensor for ecu.
I agree.
The sensor should sense temp prior to the thermostat's location where it would receive a more consistent reading, regardless of engine RPM.
So as the water circulates is faw water into housing and fills to full as it circulates to get hot. Extra water goes through water to exhaust manifold.
The raw water cooled engine's T-stat housing allows most all seawater to bi-pass actual engine cooling demands.
Only that which is needed to cool the engine (via thermostat's open position) is allowed to enter and leave the engine.
In other words, there will always be a significant amount of cold seawater (blue arrow in) circulating within the T-stat housing mixing chamber.
Example only:
When t stat opens and lets out hop water out{ this is where I am running into the over cooling } the new raw water is coming into the circulation pump past the SENSOR which is correct in that the water is cool. Thats my temp drop and after that water warms up and the sensor, Im good again.
As you know, the engine circulating pump is charging the cylinder block and cylinder heads with coolant.
The actual thermostat holds back coolant (i.e., seawater) on a "on-demand" basis. In other words, the thermostat will only allow coolant to return to the T-stat's mixing chamber as it reaches and surpasses the temp rating.
A good working thermostat doesn't know nor care at which RPM the engine is operating at.
I would have thought they would have pushed [ bypassed] some hot water back into circulation to warm new raw water.
Look at my image above.
Blue = incoming cold seawater
Red = seawater that has removed engine heat.... it is being held back by the thermostat.
Yellow/Blue = a mix of tempered seawater and cold seawater on it's way to the circulating pump.
Red/Blue = tempered seawater that is heading to the exhaust system.