I don't think the losses are nothing, once told that having a tank style water heater inside conditioned space adds about 1/4 ton to cooling calculations. /QUOTE]
That sounds high, is it possible is gas and not elec?
Was dealing with electric WH when was told this. Supposedly two 50 gallon water heaters gives twice the load on cooling calculations as a single 80 gallon water heater, though many plumbers around here are more likely to install two 50 gallon heaters as they cost less than a single 80, an HVAC guy told me the 80 is still worth it in the long run when considering cooling needs - this supposedly just based on surface area of tank and the heat it can give up, don't think gas/electric mattered much.
I could see gas being less overall efficient because it will lose heat out the vent pipe, but maybe not having too much of a difference on cooling loading.