Maybe the line is the optimum place to put it, but I have noticed direct correlation of my transmission temp to ambient air temperature, changes in the way I drive, and also what kind of load I have. Even with a small load, like an empty trailer, I see elevated temperature, and appropriately I see even higher temps when I have a full load on. So to say that this placement is not a good place would be stretching it, but I do agree there might be a better place for it, ie. the front cooler line. I haven't blown my STOCK transmission yet!
Luke