What I hear, as common urban legend, is that modern automatic transmissions are fine operating between 200 - 225. But that all depends on who you ask.
Another thing to note is that temperatures vary depending on where you are taking the transmission fluid temperature.
Some install a sensor in the pan. Pan temperature is what a lot of people think of. Fluid is hotter inside of the torque converter and transmission. In theory, the cooled fluid in the return line is returned to the pan, where it is picked up and pumped back up into the torque converter and transmission, as hot fluid is sent out the cooling line.
Some use the vehicle's transmission temperature sensor. With a good OBD II connection, you can read what your car's computer is reading. Different people have different opinions as to where the sensor is located on a particular vehicle, and the value of taking the temperature from that specific location.
Some people install a sensor in the cooling line. This allows them to see how hot the fluid is as it exits the transmission to the cooling system. This temperature should be very high. It should be very high at that point. However, you have no idea what the pan temperature is. Nor do you know if your cooling system is working properly. You just know that you have hot fluid exiting the transmission, which even without a gauge, you should already know that it's really hot.
B&M, a company which sells transmissions & accessories, recommends taking the transmission fluid temperature at the return line. This allows you to know how cool the fluid is actually returning to the transmission, and allows you to monitor the efficiency of the cooling system. Sounds logical. Only problem is that nobody else subscribes to that theory. None of the OEMs take the return line temperature. And if your return line temperature is high, you are in a lot of trouble. That would mean that the fluid is extremely high before cooling, and that the cooling system cannot bring down the temperature.