An update.
I have finally taken the plunge and changed the thermostat. Not an entirely straightforward decision as it didn't seem entirely "broken". The dashboard gauge would show a needle hovering almost at "9 o'clock" or just a few degrees below and it would move about between that small range. The car seemed to drive alright after the first 5 - 6 miles. As the thermostat on a 1.9tid costs six times as much to change as on the petrol engines, one needs a good reason to "try a new one".
However since putting in a new thermostat, the temp gauge stays absolutely stuck at 9 o'clock -- however I drive, slow fast, or whatever the traffic conditions --- and my mpg improved immediately by 2 - 3 mpg! The moral of the story is that if the temp gauge does anything other than stay absolutely GLUED to 9 o'clock, your thermostat is faulty (unless your fan has stopped working or you have lost all your water!).
Still, even with the improvement in mpg, I reckon it will take me about 16 full tanks of diesel or about 10,000 miles before I recoup the money spent on the new thermostat (parts+labour). .. and Oh, the car warms up in 4 miles rather than six now.