yeah I found my SHo engine manual
it runs how I thought,
your cooling system goes like this
the water pump blows water into the block and heads, where they come into the thermostat housing, where either the thermostat opens and sends the used coolant to the radiator, or it sends it into the bypass pipe and back into the water pump to repeat the process....
both the heater assembly and the oil cooler are basically holes in the block or head that uses the coolant for another purpose, then when its done, sends it to the thermostat housing.....
so if you loop the oil cooler outlet and the heater core outlet, both ends of that hose have coolant wanting to come out of it.... now what could be the downside to that? improper coolant flow maybe, it might work fine though.... the only thing I could think of is the hotter coolant could pool up in those spots, of particular importance would be the rear head that goes to the heater......
the head has two outlets, one goes into the heater core then back to the T-stat hsg, and has another outlet that goes right into the T-stat hsg.... this I believe is on the driver side inside ege of the head, we see these on both heads, sort of cast pipes with two bolts I believe holding it onto the head
the oil cooler side of the equation, the coolant is flowing through the block there, and it either exits into the oil cooler then onto the T-stat hsg, or moves into the heads.... I don't think that would be too much of a concern... but then again you never know if it would make a hot spot there........
I would just run two hoses, one for the heater, and one for the oil cooler, back into the T-Stat hsg..... you can still bypass everything that way, but the coolant has the chance to circulate like it was designed too....