I agree, do the NEC service calculations and you are already oversized but beyond that when the calculations come out to say 150 amps or 125 amps or even as little as 90 amps guys will roll up to 200 amp service 'just in case'.
Yes oversized as far as calculations, but, 160' away is still a far stretch to use 4/0 aluminum for a 200 amp feed but that's just my opinion.
JAP>
In my case the overhead service conductors swung from a pole mounted transformer to the eave of the house in open air to a 200a riser and meter base mounted on an outside wall to a 200a Main Breaker Panel just inside.
When the customer needed the overhead put underground so he could build his shed, the underground pipe and wire from the existing meter on the house back to the utilty pole and up to the transformer became his responsibility.
The overall length of the 4/0 aluminum underground was then pushing 165'.
Just to say that prior to the change, any voltage drop from the Pole top Transformers to the house would have been the Power Company's problem, where now it becomes the customers problem should there happen to be one.
JAP>