Got thermostat replaced. Now engine runs quite a bit warmer than before. Is this normal, will it hurt my engine?

I got the answer today. The mechanic found on the net that Toyota Tercels for about 3-4 yrs,1993-96 ran cool, or showed cool on the meter at about 1/4 between C and H. Mine is 1994. While all other cars showed 1/2 which is considered normal. Mine ran perfectly for 23 yrs Arizona Summer heat to northern Ca snow. And showed actually about 1/8 bwtn C and H. A new model of the thermostat was made in 1996 after which this car would now show 1/2 way btwn C and H. So when they replaced the old thermostat, the gauge now shows 1/4. This sounds reasonable to me. Also, they tested my engine temp after a lot of driving and it was 210° cooling to 175° after coolent kicked in. It sounds legit to me. Thoughts??