I have a 1957 Johnson 3 hp JW-13 with Head Temps near Spark plugs between 140 to 190 degrees F.
It has a new impeller, the Tube to the engine block is clear, there are no obstructions in the engine block, plenty of water with pressure comes out of the flush port.
At the exhaust port all six holes shoot water out 3-4 inches and the water is barely warm.
In addition to what crosby said, the cylinder head is water cooled only around the edges. The center, around the plugs will get quite hot, as there is fire inside there. Personally, I think your motor is just fine.