This can't be good
 

I went to a relatives house to visit and on the way there I encountered a decent grade incline of roughly 6-8 blocks long. After climbing said incline, the temp guage hovered at a hair over the halfway line and when I parked a minute later I smelled a burning smell like plastic/rubber. I looked under the hood, everything looked fine. Ever since, I have noticed that in stop and go traffic, the temp hovers between the 180-200 mark, fluctuating back and forth depending on if the car is in motion or idling. Oil level is where it should be, looks fine, coolant level is the same. Seems like I should change to a cooler stat ASAP, would you agree?

As for the burning smell, it's not horrid, but noticeable. I know the engine did get detailed before I bought it, could it be the dressing burning off? Anyone experience similiar situations?