Thermostat or not

A friend of mine has a warmed over 360 on his 76 Duster. 9,8 compression. He's got high temp since he replaced his old 318. He lives on a very hot region. His engine is knocking under heavy acceleration.. He took off his thermostat and put a restriction on the bypass that goes from the water pump to the intake. He says he's seen many 360 without the bypass. Is it a good idea to eliminate the bypass for a 360 "living" on a very hot region? Thanks for your answers.

Ricardo.