Coolant temperature sensor for guage (not ecm)

[TexasZR1]

Has anyone ever swapped in a three wire coolant temperature sensor for their gauge to get rid of the poor ground / less than favorable location choice for gauge sensor?

I have a 1991 third gen camaro that I installed this sensor (delco; three wire; 10096181) in a thermostat housing with two ports. So now on that car, my gauge reads the temp from the same location as the ECM, and right above the thermostat. It always has ground, so the issue with the stock unit where heat over time can cause a change and resistivity and high readings is gone, AND you can instantly see temperature changes due to thermostat actuation.

Any thoughts on performing a similar modification to a 1990 ZR1?

My current gauge sending unit seems to be reading high. I want to confirm I don't actually have an overheating issue (sticking thermostat, etc). Motor runs normal. It seems to get as high as around 240 on the gauge before coming back down, which is scary high to me. But maybe that's correct and this is normal for these cars?

I've not yet compared to the ECM sending signal.