Some random thoughts here.
Straight water will run cooler than antifreeze mix. Interestingly, the "no water" product that is on the market actually runs hotter than a traditional antifreeze mix. The maker of that product (Evans) even admits this, but they like to focus on it's reduced boiling point instead. That is only an issue if you have overheating problems, as boiling won't occur with a properly operating system. They also boast anti-corrosion properties however antifreeze also has similar anti-corrosion properties. It just has a shorter life so you need to change it more frequently. Although at the cost of the waterless product you could change your antifreeze several times. Personally I'd prefer to have the cooler running temps than less frequent changing. But running straight water will result in more corrosion over time, so some sort of protection is best.
The temp sending units and gauges typically are not very accurate or reliable on Fiats (as with many cars). So when you say it seems to be working properly that may be a little misleading. I cannot say much about 850 habits in particular, but mid range of the gauge or higher is normal (at best) for most Fiats. In general I'd say just above the white line on the left sounds too cool? Without the gauge having any temp values (no numbers) it is hard to know. Can you verify the actual operating temp with a infrared gun or auxiliary gauge?
The overall condition of all cooling system components is important for maintaining operating temperature. So check the whole system over. Also, if straight water was run for any length of time you may have an accumulation built up on the internal surfaces. A good flush with a proper agent will help. By the way, most of the flush products on the market today are pretty much useless. You might try one age-old proven agent, oxalic acid. It was the ingredient in all of the better flushes before the EPA decided it should be limited. But you can still buy it as straight oxalic acid powder online (quite inexpensive). Just follow the recommended dilution ratio (also found online).