I agree here. Although I don't hit my 8 iron that far, I'd say a good 7 should be WAY more then enough to hit over some trees. Since the trees are only 50 yards before the pin, a high lofted club should be mre then enough to carry them.

The only time I'd lay up with 160 yards to go, is if I drove myself into the trees, and they are 10 yards in front of me, or 10 yards in front of the pin.

I think you just need to trust yourself :-) As long as your ball isnt a ground skimmer, a little left or right should be fine.