Here are some general thoughts of mine on cooling systems.
No doubt that low of a t-stat is causing some issues. There is a fairly common theory that removing the stat (which is basically what you have with a 140 stat) can cause very high coolant temps by not allowing the coolant enough time in the rad to allow for adequate cooling. Basically the coolant flies through the radiator and back to the motor before it has a chance to cool down.
I would first install a stock stat, although most will say a 180F.
The reason one side of the radiator is hotter than the other is that the coolant enters on one side (hot) and exits on the other (cold). Nothing to worry about there.
Unless you have some odd-ball combo the 160F (or lower) stat will do more harm than good. The lower cylinder temps will increase bore wear, engine oil will not get up to temp, and power and economy will most likely suffer due to poor combustion. Depending on the source, ideal coolant temps will be anywhere from 195F to 220F.
Most people feel that the 180F stat is a good compromise. I ran one for several years in a stockish 302, with no noticeable problems.
Hope this helps by bringing up some of the factors to consider when changing the coolant T-stat.
The literatures I have read (mostly SAE published papers) tend to indicate that the engine is most efficient around 200F coolant temps. The coldest coolant temp I have seen for any test (whether analyzing power/emissions/economy) has been 190F, anything lower seems to be considered cold start. The highest temp I have seen in a test is 240F. At 350F the glycol coolant degrades to form corrosive acids. The 350F limit is a local temp, for example in the head, between the valves. I am unsure how to correlate the 350F max allowable temp to ECT sensor readings.
Coolant/water mixtures should be at 50/50 whether using ethylene glycol or propylene glycol. I have seen SAE published papers that tested different ratios between 30/70 and 70/30. The best all around performance tends to be at 50/50.
Water is a better cooling fluid than the glycols, but does not provide the corrosion protection.
Another danger with straight water, which is hardly ever mentioned, is Cavitation. Cavitation damage occurs when the coolant experiences brief low pressure, followed by a return to high pressure. This situation is primarily found in water pumps, but is also common on the coolant side of cylinder walls of diesel engines.
As the pressure drops, the coolant forms small vapor pockets. When the system pressure increases, the vapor pockets collapse. The collapse releases a large amount of energy, which can damage the surface of metal materials. Think of a bubble popping, but with much greater force. By raising the vaporization temp of the coolant, glycol additives will help prevent cavitation. Using a proper radiator cap pressure will do this as well, as increasing the pressure in the entire system will provide protection against local low pressure zones.