What you're describing can be helpful, but I'm describing a state where you fundamentally go beyond any involvement of thoughts including a countering internal dialogue. By many accounts, the key indicator of being in this state is one of peace/bliss/serenity/total contentment.
In fact, I should really say you operate from a place which is 'before thought', since 'beyond' suggests something after the thinking process. Actually it can almost feel like thinking is a strenuous burden in this state, which suggests you're 'before' the thinking process.
Observing thoughts while still operating from "within your mind", which it sounds like you're describing, doesn't necessarily lead to that experience.