Had a 4.0L in an 89 Cherokee. Temp normally ran just a tick under 210 on the gauge. On a hot day with AC, it could run anywhere between 210-225 in stop and go, then back down to 210 on the open highway. Obviously, it's important to keep your coolant fresh, at the proper level, etc... and it sounds like you are.
Since then, I've had 4 JGC's with 5.2L and 4.7L V8's... these all seem to run right in that same range. So like I said before, it's pretty normal and nothing to really worry about. On the other hand, you don't have much of a safety margin in case something happens to REALLY raise the coolant temp. I guess it's a matter of what you're comfortable with.
You may want to consider some type of aux trans cooler. This will help lower your overall temp and also help prevent a trans overtemp condition that will lockout your OD.
Proud V8 ZJ/WJ owner of
1993-1998-1999-2002 model years.
[b]Have you hugged your Jeep today?[/b]