Good discussion and thanks to those who contributed. All good food for thought.
I found a reference on the Velocity forum to this same issue (oil cooler bypass circuit leading to high oil temps in a Franklin). Due to the layout of that aircraft, owners who use Franklin engines resort to a stiffer spring in the oil cooler bypass circuit. This overcomes the higher pressure drop due to the longer runs and the oil filter. There is an outfit in Poland that sells the stiffer spring.
On the other hand, I spoke with a knowledgeable person I was referred to by Susan at Franklin. He said he had never encountered an overheating problem due to the oil cooler bypass spring not being stiff enough. He has encountered several instances where people installed a spin-on oil filter and plumbed it backwards, which effectively blocks the oil cooler circuit. He did say that a lot of owners put one or two washers under the springs (one or both sides) to up the oil pressure, or just for peace of mind. Apparently, these springs lose tension over time.
Susan cannot supply a stiffer spring. They have only the stock spring(s) in inventory. The manual calls for 2.1 to 2.4 lbs of force to compress the spring to a length of 1 1/16". My springs were both replaced in Feb this year. Out of curiosity, I checked the oil cooler bypass spring that was removed in Feb by this method and it registered at 2lbs. So it was a bit weak. I have no idea how stiff the new spring supplied by Susan is. I asked her to find out.
Having said that, the guys who have been working on my plane were convinced the oil temp excursion was a function of the gauge. We rebuilt the gauge. Same issue. They then rewired the gauge with new wire, said the old wires had a couple butt joints that introduced additional resistance. Apparently higher resistance imitates higher oil temps on the gauge. I would have thought it would be the other way round, since the gauge is effectively a voltmeter. But in their favor, the problem then resolved. At least it did for a 25 min "stress test" flight. Hopefully it will not reappear. I will put a couple washers under that spring though, when we next have the cowling off.