Yeah, I've usually got plenty to say
160KB is only 8 sectors per side, one side per cylinder. Although DOS 1.x physically formatted 8 sectors per side, DOS after 2.0 physically formats 9 sectors per side when the /8 switch is given, but uses only the first 8. In other words, the DPB reflects 8 sectors, but the disk in fact is formatted with 9.
It's perfectly possible to stick a DOS 1.1 image on a 1.44M floppy, using only the first 8 sectors of the 18 physically present. DOS 1 doesn't know anything about densities and so leaves the controller alone. Where you get into trouble is when using DOS 1.1 FORMAT on a high-density drive (or even a 720K drive). It attempts to make sense out of the parameters returned by the BIOS and tends to really mess things up--you'll get whacky messages about the number of bad sectors and generally will not be able to SYS the floppy that you get--SYS gets even more confused.
The safest way to go if your system supports the setting is to tell the BIOS that you have a 360K drive where your 1.44MB one is. Sometimes, depending on the vendor, you can get away with this and everything, including FORMAT, works just the way it should.
Note that you can use COPYQM's BLIND mode to transfer a 160K to a 720K floppy. If you specify SMART, COPYQM will use whatever format's already there--until it hits the first write error, after which it'll format the remaining tracks on the floppy. I was kind of hoping to create a native 1.44MB bootable floppy using COPYQM's CONVERT argument, but DOS 1.x doesn't use the same boot sector layout that later versions do. Maybe it's possible with some tinkering, but FORMAT, DISKCOPY, COMP, and SYS are definitely going to have issues...