The more heat and engine can tolerate, the more power it will produce. Anyone tells you different doesn't know thermodynamics.
Absolutely! The hotter the combustion chamber, the more power you can produce. In all forms of racing, they run the maximum amount of heat in the engine they can. I think the NASCAR boys run around 230-240 all the time, but they're also looking for that extra 1 or 2 hp over their competitors, and they have unlimited budgets if they blow up an engine. Those NASCAR radiators are $10,000.
I would say that part of the problem with heat in Pontiac engines has to do with their exhaust port design. Not the best flow, but adequate for a cruiser. Problems arise when aftermarket cams are used, which typically increase the intake/exhaust lift and duration, but the Pontiac exhaust port is simply not designed to flow more than its original design parameters without knowing how and what to port.
The basics, using factory designs, will work. A GM clutch fan, closed cooling system (post-1971 style), correct timing, good water pump, and if you throw in an aluminum radiator, that should work for 99% of the Pontiac setups out there.
I run an aluminum radiator, Hayden 18" thermal clutch fan, straight water + Water Wetter, stock shroud, stock baffles, stock water pump, manifold vacuum, modified distributor vacuum advance to pull 36 degrees at idle, and a regular thermostat (hole drilled to eliminate air pockets). I stay at 190 degrees all the time, occasionally going to 195 on 90+ degree days while sitting in traffic or after a hot shutoff.
