My opinion is that under normal highway driving the oil temp should remain between 180-230 degrees, this gives you the headroom for the spirited driving the car is advertised as supplying. The fact that you hit 260 with cruise on scares me as this just shouldn't happen unless you're climbing a mountain.
As far as engine damage, there is non likely for brief spike to 260. Sustained temps of 260 and above are a serious concern for the bearings and could drastically shorten their life.
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