Yeah well Muzzie, I think you know the answer on this one!
You need to splash out for a replacement thermostat. Bit pricey for us in NZ - about $150 (that's 54 pounds, if anyone cares!) for a Turbo one, probably closer to $90 for a standard 1301cc (Uno 70) version. The difference? The Turbo one has a drilled and tapped hole for the coolant temperature sensor (for the fuel injection).
I have never liked drilling and tapping holes (they usually end up loose and wobbly for me) but if you know someone with some metric taps and the correct (odd!) size drill bits, then it would be a great way to save $60-odd.
You will find that with the new thermostat, you have pretty much instant heat from the heater, and that lovely little temperature gauge will point to between 1/3 and 1/2-scale...
It's still possible that your heater valve is stuck, particularly if it's the white rectangular shape (not the black, heart-shape). Once you take a look, it'll make sense
The rectangular one has a sliding piece that can jam, even if the operating lever still moves normally. The heart-shaped design is much better, as the valve plate rotates instead of sliding. But I think you should sort out the thermostat first.
-Alex