oric_dan:
Do you know how hot 175 degC is?
Yes I do. It's the temperature when the thermal shutdown starts. I will agree, however, that given every other part of the evaluation was done with a conservative value, that something like 150C is probably a beter value to use.
Instead of using guesses about what the part can do, we should always look to the datasheet to see what the parts can really do.
At 7V in, this regulator on the PCB, will easily handle over 500mA before thermal shutdown starts.