OK, I'll add to the party...
I typically set the depth of the core plugs below flush the same as the thickness of the plug. If the plug material is .020" thick, the square corner of the plug is .020" into the bore. Just use an eye-crometer to set that. I don't want to chance that the corner isn't in the bore. I use a sealer, but not RTV. I typically have an anarobic sealer on hand, or some Hylamar. Not opposed the formagasket. Not uncommon for the bores to be in less than perfect condition.
As for pressure and thermostats. Worst pressure is not at operating temperature. Closed (or mostly closed) thermostat and high RPM. Small block Fords have been known for half a century for there ability to blow up a heater core. I am guilty of making a few die when I made a hard pull on a bit too cold of an engine. Ford made restrictor kits to put in the heater lines of many vehicles (Police fox body mustangs are probably the most famous). That is why the heat shut off goes on the water line off the intake and not the water pump inlet. The shut off cuts the pressure going into the heater core but not limiting the water pump from pulling from the core.
And correct, they are not freeze plugs. They won't pop out to protect the block if it is full of water and freezes. They will pop out after the block cracks and relives the tension on the plugs because the bore is cracked open. Seen plenty of blocks that froze and split. You wouldn't think that most of those were in AZ and southern California. But people don't think about freezing in those areas and it does freeze here. Thus a lot of cracked blocks. Usually blows the water jacket to the outside, but it can blow the cylinder bore as well. That's fun, trying to get a piston out that the cylinder imploded.
I tried so hard to stay out of this thread, but I just can't let this nonsense persist. So sit back, listen, and enjoy.
1. You cannot look backwards at an evolution and describe it using context from today. That is the wrong way to evaluate it. The proper way is to start at the beginning, and look FORWARDS. This is the same error that causes most religions and politics to go off the rails. Same is true for automotive evolution. So let's begin with the beginning.
In 1886, Karl Benz invented the liquid cooled internal combustion engine. It took another 8 years or so for Maybach (1890's) to put a radiator in front of it. Then it took another 20 years for Henry Ford to mass produce it into the model T. For 20 years, from 1908 to 1927, over 15 million units were made, and they did not have cup plugs. The first 4 years of production used threaded plugs in the block. Then in 1913, Allie Welch of Welch Motorcars was award US patent 1,058,210 for the expanding disc core plug. That core plug type was used by Ford motor company from 1913 to the late 1950's. The modern cup style core plug was not used in a Ford until the later Y block, and FE. Then of course in the Small Block Cleveland released in 1962. It is worth noting that the language evolved over time, but the nature of the convex Welsh plug, expanding when flattened also became known in the late 1920's as an expansion plug. Which makes perfect sense if you think about how it works. Take a round disc, peen it with a hammer to make a dome, insert the dome into a recess in the block. and smash it flat...and it expands. For 30 years the Welsh patent expanding disc core plug was THE method of sealing core plugs in cast iron engine blocks. At the same time, people in cold climates learned that if the weather was sufficiently cold, they could come to their car in the morning, and the ground would be covered with water, and and the Welsh Patent expanding disc core plug would be on the ground. There have been MANY instances where marginal slushy ice formation ejected the core plug before the block cracked, but in general, the appearance of a Welsh plug on the ground next to a puddle meant your engine FROZE. Many enthusiasts came to believe that the design intent of the core plug was to eject the plug before the block cracked. So the Welsh Brothers Patented expanding disc core plug became known as the "Freeze Plug" or a "Frost Plug." It is an ABSOLUTE indicator that your engine has experienced an ice event, and it is legitimately called a "freeze plug." If you don't like the name, then call it whatever you want. But if you want to call a Hooke's universal joint a "Cardan" joint, then you should absolutely call a Deep Draw cup plug a "Welsh Plug." (Even though it isn't...) The 1965 Ford FE 427 received threaded core plugs, and the Small Block Ford in 1969 Boss 302 received similar threaded core plugs. The Ford Motorsports 4 bolt main small block also received o-ringed threaded core plugs.
Fast forward to WW2, and the US Government needed a solution to water ingestion during amphibious operations in the M3A3 Stuart tank. Cadillac designed a "closed ventilation system" to eliminate the road draft tube, and applied that to the M5 Stuart in April, 1942. This was the first production PCV system. It had absolutely nothing to do with emissions, is not an emissions device, and was never intended as such. Nevertheless, it was applied to various automobiles thruout the 50s', and because mandatory in the 1960's. The first thermostat was installed by Cadillac in 1914, and became prevalent in the 1930's. The First pressure caps became popular in WW2, and in 1954, the 7lb Raymond Stant pressure cap was installed in the Kaiser-Frasier.
So all of the backwards looking "this happened because of that..." is just revisionist analysis looking the wrong way.
Freeze plugs indicate that a frost/freezing event has happened. They can and have popped out prior to blocks cracking in some rare instances. They are not designed to protect the block from a frost/freezing event.
Deep draw core plugs are called "freeze plugs" because people like to call them that.
Deep draw core plugs are called "expansion plugs" even though they don't expand.
Deep draw core plugs are called "Welsh plugs" even though they aren't.
Deep draw core plugs are never called "core plugs" even though that's what they are.
Now I forgot what I was trying to tell you. So I'll stop.