I think 143F is the standard opening temp for Merc stats. Is on the ones I've seen and mine. 140F is the temperature of a US domestic hot water heater (in the home) when set to the N (normal) position for a "how hot is that" reference. On my engine 2500 rpms is about where water pressure forces the poppet off it's seat and allows bypass water through the block which can be cooler than it was when stat controlled at the lower engine speeds. Steam says something is wrong.
Your OT sensor is probably 195F like mine. If your block temp gets to that temp it will close the switch, grounding one side of your warning horn which is either in your control box or in the wiring harness adjacent. Some boats, like ProCraft for one also have an indicator light that illuminates when the horn is on in the event you couldn't hear the horn as a safety measure.
Steam is not good, unless it's winter and then it's water vapor, not steam and usually normal.
Mark