how hot is too hot?

When it's 90-95 degrees like it's been lately, and driving in city traffic, the temp gauge will register 210 deg. I've never seen it above this. When driving on the highway, 60 to 70 MPH, it stays at 180 deg. When I get some time and money, I plan on upgrading to an aluminum radiator and an electric fan, but in the mean time, I just want to drive it. My engine builder thinks this is way too high. I always thought a hot engine runs better, as long as it is not boiling or detonating. Am I risking damaging my engine, or am I worrying over nothing?
Down here 210 is cool, some of the new cars run at 210 as a normal temp.