This has nothing to do with draw, has to do with output.
If you have a 160amp alt, it WILL put out 160 amps.
You are protecting the entire electrical system from the alt........again, nothing to do with draw.
No, I would not use, did not use, a breaker.
You need to be beyond your amp output...............175 at least, if not 200.
If you use a 150amp breaker with a 160amp alt, you will be constantly resetting the breaker
This is pretty much all incorrect.
1.Alternators aren't constantly putting out max current. They aren't putting out any more current than is being drawn by the system they're attached to. It has EVERYTHING to do with draw.
2. A 160 Amp alternator will only put out 160 amps under certain conditions, namely, when turning fast enough to produce that much current, and when there is that much current being drawn by the battery, engine, lights, radio, and whatever else is using power in the system.
3. Because of 2, if you don't ever need more than 150 amps, there's nothing wrong with 150 amp breaker/fuse on a 160 amp alt. The breaker/fuse is there to protect your wiring first.
4. Nothing wrong with the breakers instead of fuses, I run a 125 amp breaker in my daily driver XJ with stock alt. I run a 150 amp ANL fuse in my trail rig with a 160 amp alternator. Have never popped the breaker or fuse. Installed 125 amp breaker in two other XJs with stock alternator output without problems. All with 4 gauge cables I made.
To the OP:
Get rid of the fusible link/stock alternator positive wire entirely. Replace with 4 gauge or larger wire, with either a fuse or breaker sized to protect the wire or to match the output of the alternator, whichever is smaller. (IE: 0 gauge wire will handle more power than a 136 amp alternator will ever produce, so i'd suggest a 150 amp fuse/breaker which is probably the closest to 136 you'll get without being under sized). Alternatively, if you don't ever need the extra power, you'd probably be fine with a 125 amp breaker, but there's no real reason to undersize the breaker since the wire will handle the extra current without a problem.