150-160 is good. I'm surprised you had 165 on one cylinder. High octane is fine.
Smoke is a good sign, it means your automatic system is feeding oil into the system.. However a lot of people don't trust the automatic system and convert to premix so they know exactly what their oil and gas mix is.
The real trick is to make sure the mix isn't too lean. Also if you have leaks in the bottom end of the engine you'll blow the engine too. Have your local dealer to a pop-off test to make sure it is in spec.
This site is great for information
Personal Watercraft Carburetor Tuning but after working on 2-stroke skis all summer long we've decided we only want 4-stroke from now on. The 2-strokes are too fussy.