It won't feel very hot, the thermostat should start to open at 42C and be fully open at 52C. If you think it's not reaching this, it would be worth checking the thermostat.
I would concur with pvb that the 1GM should never get too hot to hold a finger on the head, mine certainly never did, although my recollection is that the thermostat is set for operation at about 65 degrees.
If a raw water cooled engine gets too hot, then you will get salt deposition in the waterways, which clogs them up, is very difficult to remove, and causes it to...er... get hot! Should not go over 55 - 60C