I can say from experience that those sensors don't do well in open air situations. I've blown an engine because of it. (different story, different day.)
However, if you were to put it inside the controller, or somewhere where the air isn't flowing, it would give a largely basic idea of ambient temps.
There are other types of thermal sensors that should also work with that gauge, really.
Ben - Had you ever tried to disassemble the gauge panel? What would have been wrong with finding another gauge with a similar sweep and just mounting the guts of it behind your gauge face, using the OE needle? There's plenty of plastic in there to make mounting points with, I don't see why it wouldn't work?
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