Temperature gauges often lie about what's really going on. Specifically, they have a dead point around normal operating temperature so the needle doesn't move too much with the normal fluctuations of temperature and panic the driver. 
No experience of the TD's gauge, but bear that in mind.
Sounds like you've made an improvement. If the viscous fan gets annoying, bear in mind that many TD drivers report that it works perfectly well with just the electric fan. Store the viscous fan vertical if you do decide to remove it.
I removed the old fan previously, and the engine got a little too hot for comfort, to the point where the electric fans were coming on at low speed after a short but spirited drive. It was at this point I broke the original viscous as I removed the bi-metallic strip in the centre. I thought it would be like a Senator/Carlton unit where the fan assembly is held to the shaft by an allen headed bolt under the strip. I refitted it, but the viscous fan was then on all the time as I'd bent the strip to the point where the little button under it wasn't pressed in at all. I still refitted it as it was though, better to have the fan on all the time than not at all.
The replacement fan, a second hand unit off Diamond Black Geezer, was initially working in exactly the same way as the one that came off (before I broke it), i.e. it would be silent until you'd driven the car for about 4 miles, then it would kick in. Definitely not the case now, thankfully.
Same with me, I reckon a new stat would help my engine, but there's nothing apparently wrong on the temp gauge... pinch of salt, really, I think. I does sound like Mr Scatman has done good. 
I can't remember the name of the product I used, other than it wasn't the Holts stuff I'd been advised not to use. The instructions said to add it to the header tank and leave the engine ticking over for 15 minutes. I wasn't holding out any hopes, and the liquid I drained was brownish, but no sludge to speak of. But as the cooling system was 100% water for the past week, it maybe has dislodged a bit of crud, and the added bonus of having proper new coolant in the system would also help.
To drain the system, I removed the smaller bottom hose that sits next to the drain plug on the passenger side of the rad. God knows how you're meant to get the drain plug open from the position its set in, there isn't enough room to grip it to turn, or get a screwdriver in the slot! Don't forget that I previously removed the radiator from the car and took it to the local jet wash to clean it externally, I also turned it both ways up and ran a hose through it, plenty of brown shite came out then, so I guess most of the remaining crud was hiding in the rest of the cooling system. I also flushed the system out with a hosepipe last Saturday, so from then till last night it had clear water in it.
Once I've changed the oil, I'll give it a good blast up the bypass and see if it starts to get hot again. The viscous fan can remain on for the time being, I main even drain the coolant again in a few weeks just to be sure.