The tank temperature on the new water heater is held at 160 degrees and the outgoing water goes through a mixing valve that drops it to our desired setting.
Water is expensive to heat. Usually it's the most expensive energy use in the house. Why would you heat it hotter than you need just so you can cool it down to use it? I think you'd save money by not heating it any hotter than your max use, like 120 to 130.
