Yep. Car needs to remain at a pretty consistent temp, the "operating temp" in fact, to operate properly. If you remove the t-stat you'll probably keep the engine too cool since the coolant will be flowing all the time.
I'm sure there's more to it than just that but the pros will chime in soon...
yes, it would actually hurt it. The coolant wouldnt ever have a chance to cool down in open loop, therefor causing you to run too hot. and why do you have such large font?
Little confusion. OL is when the car is warming up. CL is when the car is at operating temps. Coolant does not try to cool down (generally) in OL.
No stat or restrictor plate of any sort will make the car take forever to warm up, and once it starts to get too hot, it will really get hot. NOT good.
Bad idea - leave a t'stat in. And replacing it with a lower temp t'stat will not solve an overheating problem. By the way, the t'stat not only controls temp, it's also there as a flow control to limit velocity/flow in the system.