Greg,
I had this behavior, but not as bad as you because I knew what to expect. It's tricky to get all the air out and if you don't do anything special, it just takes time. You will get that needle jumping hot and then dropping off because the gauge sender will get hit with air that's hotter then the coolant.
I remember the 2.5 liter camry V6 had two bleeder valves on each head for releasing the air when filling the cooling system. Removing that throttle body coolant hose is a sort of make shift bleeder valve. By now you probably have most of the air out so don't bother. But remember for next time.
Personally, I'm happy with the 88C thermostat in my MTX. The way I see it is that while the temperature differential is lower in the head now, it is higher in the radiator. This will even things out. Plus the computer controls the fan. Before, with a 82C robertshaw (non jiggle valve version my dad put ages ago), the fan would rarely come on except in really hot weather. Now my fan comes on and does some useful work every now and then. My needle goes to just below M and stays there except in stop traffic. But hey, in traffic it would go up with the old colder thermostat too.
Also, as an extra measure, I dropped my coolant concentration to 35% and am using water wetter as an SCA. Even though it's Dexcool, I'll just drain a gallon out of the radiator once a year and pop in another bottle of water wetter. No matter how much hotter that thermostat is, my cooling system is rejecting more BTU's then an 82C thermostat with a 50/50 coolant mix.
Scott, if they did discontinue that 80C part and you ever decide to try the 88C part out instead of the Robertshaw, I believe the Dexcool SCA package will allow for a 40% concentration with the same extended intervals. My containers of Havoline dexcool actually list the 40% concentration on the tables! It's been a long time since I've seen that since the 50/50 mix has been the American standard and most antifreeze takes that into consideration with regard to the corrosion inhibitor package. 40% should make up for a hotter themostat. It never gets below -7F in your neck of the woods, does it?
Rick