Good points. I still think there may be some benefit of increasing incoming temperature in places where incoming water is otherwise pretty cold. but maybe the preheating should only be to 75 or 80 degrees at the most. Maybe just an unheated storage tank would gain enough heat on its own in many applications resulting in room temp being the max input to the instantaneous water heater.
this is the code i have been trying to crack in my home, something that works well and get to those temps you say.
still trying to find that one solution that works in both summer and winter.