If the tranny created enough heat to toast a sensor, there would be no hope for rubber parts like o-rings. All FWD cars with automatic transmissions bolted to the engine block suffer from heat saturation. So while I don't disagree with the heat issue, I suspect the sensor is just poorly designed. Overheating causes bigger problems than a cooked sensor.
That said, 167,000 miles and counting on the original tranny isn't bad. Glad you got the problem fixed.
That said, 167,000 miles and counting on the original tranny isn't bad. Glad you got the problem fixed.