It seems strange to have a feature which is counter productive, and how many shooters realize this? Another lesson learned.
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Well, think of the context of a "good" photo - shadows well lit. You won't see a difference if you don't have significantly deep shadows, because the extra noise that ISO 160 has over 200 on the 1D* series and the 5D is only read noise; a noise that isn't particularly visible in the highlights and midtones, especially at low ISOs. If you expose to the right and only have a scene DR of say, 4 stops, you're not going to see the problems with 160; it will be slightly cleaner (1/6 stop less shot noise) than 200 in the midtones and highlights.
Of course, if you can use the same Av and Tv values at ISO 200 without blowing the highlights, you will get much less shadow (read) noise than at 160.