I've never heard of a low coolant warning sensor. There isn't a sender for it on the car and I'm not sure how we'd engineer something like that. I'm pretty sure all our e30 M42's were never intended to have a low oil or windshield washer fluid indicator like the M20's check control did...they took all that out for the M42.
The radiator fanstat switch is also in a very good place, on the hot side of the radiator it will react to changes fairly quickly. Most BMWs have it in the exact same spot. It does control the aux fan in front of the rad. I'd advise testing it...if I recall correctly:
1. Turn the key to position 1
2. Make a short length of 14-ish gauge wire into a jumper by stripping both ends
3. Pull the plug off the switch and short the black/red wire socket to the green ground socket. The fan should turn on low speed.
4. Pull the jumper out of the black/red and put it into the black socket. The fan should spin at high speed.
The two coolant temp sensors on the side of the head are in the best position IMHO. They sit high on the head, so if you develop a bubble or the thermostat fails closed you'll see the temp sensor move quickly. The cluster sender might have been bad, and even if it is good, the gauge is designed to sit in the middle most of the time. It's "buffered" so that it looks kosher when in fact it might be ready to pop the gasket. The gauge is scaled so that it tends to stay in the middle...I've heard some BMW guys figured that the middle mark by itself was about a 20 degF range.
The fuel gauge is the same way, at least in US cars. 3/4 tank to 1/4 tank is nearly all of the gauge sweep, so psychologically most people feel that it gets better mileage.
In fact, BMW made two production changes on the e30. You'd figure they'd make the gauge more accurate, right? Maybe enable the high temp warning light? Nope. They put a bypass in the heater hoses to prevent overpressure from rupturing the heater core (not fun, I've had it happen to me on my old VW). Then they found the profile gasket failure and replaced a bunch of engines. They didn't fix the worst problems though...the plastic pump impellers, the cheap radiators or the too-thin head casting.