it is entirely possabe that your aquastat is reading wrong.
as for water temps i have read that in single tube fin baseboard rads that 180 degre water can deliver 650 btu per foot of rad while the same rad at 140 degree water would only give off 350 btu
as for heating your home with lower temps water, it is obvious that the btu's in any type of appliance would drop. the trick is to deliver more btu to the room than you are losing. for example if yoru room was losing 5000 btu per hour and you were delivering 50,000 your room would heat up quite quickly. on the other hand if your room were losing 5000 btu per hour and you were only delivering 30,000 btu, you would still be able to heat your room but the rise to your set point would take much longer as the ratio of heat loss to delivered btu is clsoer. think of it as a 4 gallon bucket with a hole in it..lets say the bucket is losing 1 gpm out the hole. if you deliver to the bucket 2 gpm and you are losing 1 you would fill the bucket eventually but very slowly ( about 5 minutes)if you were to deliver 5 gpm you would it would only take about 1 min (even if my math is wrong you should get the picture)
right now my dry well aquastat says my shut of point is 160 off and 145 on, my thermometer i have installed in the water jacket reads the aquastat shut off as 170 and when the aquastat kicks in at it's 145 setting my thermometer reads 155